Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.01 par value per share | |
Trading Symbol | CVI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100,530,599 | |
Entity Central Index Key | 0001376139 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents (including $65 and $45, respectively, of consolidated variable interest entity (“VIE”)) | $ 644 | $ 581 |
Reserved funds for debt payment | 0 | 598 |
Accounts receivable, net (including $37 and $42, respectively, of VIE) | 253 | 286 |
Inventories (including $72 and $69, respectively, of VIE) | 601 | 604 |
Prepaid expenses (including $7 and $8, respectively, of VIE) | 36 | 59 |
Other current assets (including $1 and $1, respectively, of VIE) | 21 | 51 |
Total current assets | 1,555 | 2,179 |
Property, plant, and equipment, net (including $744 and $761, respectively, of VIE) | 2,210 | 2,221 |
Other long-term assets (including $46 and $48, respectively, of VIE) | 328 | 307 |
Total assets | 4,093 | 4,707 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 8 | 606 |
Accounts payable (including $32 and $39, respectively, of VIE) | 551 | 530 |
Other current liabilities (including $47 and $37, respectively, of VIE) | 484 | 546 |
Total current liabilities | 1,043 | 1,682 |
Long-term liabilities: | ||
Long-term debt and finance lease obligations, net of current portion (including $547 and $547, respectively, of VIE) | 1,577 | 1,579 |
Deferred income taxes | 322 | 327 |
Other long-term liabilities (including $48 and $50, respectively, of VIE) | 84 | 81 |
Total long-term liabilities | 1,983 | 1,987 |
Commitments and contingencies (See Note 13) | ||
CVR Energy 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 March 31, 2024 and December 31, 2023, respectively | 1 | 1 |
Additional paid-in-capital | 1,508 | 1,508 |
Accumulated deficit | (628) | (660) |
Treasury stock, 98,610 shares at cost | (2) | (2) |
Total CVR stockholders’ equity | 879 | 847 |
Noncontrolling interest | 188 | 191 |
Total equity | 1,067 | 1,038 |
Total liabilities and equity | $ 4,093 | $ 4,707 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 644 | $ 581 |
Accounts receivable, net | 253 | 286 |
Inventories | 601 | 604 |
Prepaid expenses | 36 | 59 |
Other current assets | 21 | 51 |
Property, plant and equipment, net | 2,210 | 2,221 |
Other long-term assets | 328 | 307 |
Current liabilities: | ||
Accounts payable, current | 551 | 530 |
Other current liabilities | 484 | 546 |
Long-term liabilities: | ||
Long-term debt and finance lease obligations | 1,577 | 1,579 |
Other long-term liabilities | $ 84 | $ 81 |
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, common shares (in shares) | 98,610 | 98,610 |
Variable Interest Entities | ||
Current assets: | ||
Cash and cash equivalents | $ 65 | $ 45 |
Accounts receivable, net | 37 | 42 |
Inventories | 72 | 69 |
Prepaid expenses | 7 | 8 |
Other current assets | 1 | 1 |
Property, plant and equipment, net | 744 | 761 |
Other long-term assets | 46 | 48 |
Current liabilities: | ||
Accounts payable, current | 32 | 39 |
Other current liabilities | 47 | 37 |
Long-term liabilities: | ||
Long-term debt and finance lease obligations | 547 | 547 |
Other long-term liabilities | $ 48 | $ 50 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,863 | $ 2,286 |
Operating costs and expenses: | ||
Cost of materials and other | 1,463 | 1,680 |
Direct operating expenses (exclusive of depreciation and amortization) | 164 | 169 |
Depreciation and amortization | 75 | 66 |
Cost of sales | 1,702 | 1,915 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 36 | 39 |
Depreciation and amortization | 1 | 2 |
Loss on asset disposal | 1 | 0 |
Operating income | 123 | 330 |
Other (expense) income: | ||
Interest expense, net | (20) | (18) |
Other income, net | 4 | 3 |
Income before income tax expense | 107 | 315 |
Income tax expense | 17 | 56 |
Net income | 90 | 259 |
Less: Net income attributable to noncontrolling interest | 8 | 64 |
Net income attributable to CVR Energy stockholders | $ 82 | $ 195 |
Basic earnings per share (in dollars per share) | $ 0.81 | $ 1.94 |
Diluted earnings per share (in dollars per share) | $ 0.81 | $ 1.94 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 100.5 | 100.5 |
Diluted (in shares) | 100.5 | 100.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Total CVR Stockholders’ Equity | $0.01 Par Value Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 100,629,209 | ||||||
Beginning balance at Dec. 31, 2022 | $ 791 | $ 531 | $ 1 | $ 1,508 | $ (976) | $ (2) | $ 260 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 259 | 195 | 195 | 64 | |||
Dividends paid to CVR Energy stockholders | (50) | (50) | (50) | ||||
Distributions from CVR Partners to its public unitholders | (70) | (70) | |||||
Other | (1) | (1) | (1) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 100,629,209 | ||||||
Ending balance at Mar. 31, 2023 | 929 | 675 | $ 1 | 1,508 | (832) | (2) | 254 |
Beginning balance (in shares) at Dec. 31, 2023 | 100,629,209 | ||||||
Beginning balance at Dec. 31, 2023 | 1,038 | 847 | $ 1 | 1,508 | (660) | (2) | 191 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 90 | 82 | 82 | 8 | |||
Dividends paid to CVR Energy stockholders | (50) | (50) | (50) | ||||
Distributions from CVR Partners to its public unitholders | (11) | (11) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 100,629,209 | ||||||
Ending balance at Mar. 31, 2024 | $ 1,067 | $ 879 | $ 1 | $ 1,508 | $ (628) | $ (2) | $ 188 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 90 | $ 259 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 76 | 68 |
Deferred income taxes | (5) | 3 |
Loss on asset disposal | 1 | 0 |
Share-based compensation | 10 | 9 |
Unrealized loss (gain) on derivatives, net | 24 | (32) |
Income from equity method investments | (4) | (3) |
Return from equity method investment earnings | 3 | 2 |
Other items | 2 | 1 |
Changes in assets and liabilities: | ||
Current assets and liabilities | (21) | (58) |
Other long-term assets and liabilities | 1 | (2) |
Net cash provided by operating activities | 177 | 247 |
Cash flows from investing activities: | ||
Capital expenditures | (47) | (45) |
Turnaround expenditures | (12) | (8) |
Return of equity method investment | 3 | 19 |
Proceeds from sale of assets | 1 | 0 |
Net cash used in investing activities | (55) | (34) |
Cash flows from financing activities: | ||
Principal payments on senior secured notes | (600) | 0 |
Dividends to CVR Energy’s stockholders | (50) | (50) |
Distributions to CVR Partners’ noncontrolling interest holders | (11) | (70) |
Other financing activities | (3) | (2) |
Net cash used in financing activities | (664) | (122) |
Net (decrease) increase in cash, cash equivalents, reserved funds and restricted cash | (542) | 91 |
Cash, cash equivalents, reserved funds and restricted cash, beginning of period | 1,186 | 517 |
Cash and cash equivalents, end of period | $ 644 | $ 608 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2024 | |
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 marketing industry (the “Petroleum Segment”) and the nitrogen fertilizer manufacturing industry through its interest in CVR Partners, LP, a publicly traded limited partnership (the “Nitrogen Fertilizer Segment” or “CVR Partners”). The Petroleum Segment refines and markets high value transportation fuels primarily in the form of gasoline and diesel fuels. CVR Partners produces and markets nitrogen fertilizers primarily in the form of urea ammonium nitrate (“UAN”) and ammonia. We also produce and market renewable diesel. CVR’s common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “CVI”. Icahn Enterprises L.P. and its affiliates (“IEP”) owned approximately 66% of the Company’s outstanding common stock as of March 31, 2024. CVR Partners, LP Interest Holders - As of March 31, 2024, public common unitholders held approximately 63% of CVR Partners’ outstanding common units and CVR Services, LLC (“CVR Services”), a wholly owned subsidiary of CVR Energy, held the remaining approximately 37% of CVR Partners’ outstanding common units. In addition, CVR Services held 100% of the interest in CVR Partners’ general partner, CVR GP, LLC, which held a non-economic general partner interest in CVR Partners as of March 31, 2024. The noncontrolling interest reflected on the Condensed Consolidated Balance Sheets of CVR is only impacted by the results of, distributions from, and unit repurchases by CVR Partners. Unit Repurchase Program - 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”), which was increased on February 22, 2021. During the three months ended March 31, 2024 and 2023, CVR Partners did not repurchase any common units. On February 20, 2024, the UAN GP Board, on behalf of CVR Partners, terminated the nominal authority remaining under the Unit Repurchase Program. Subsequent Events - The Company evaluated subsequent events, if any, that would require an adjustment to the Company’s condensed consolidated financial statements or require disclosure in the notes to the condensed consolidated financial statements through the date of issuance of the condensed consolidated financial statements. Where applicable, the notes to these condensed consolidated financial statements have been updated to discuss all significant subsequent events which have occurred. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (2) Basis of Presentation The accompanying condensed consolidated financial statements, 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 (“SEC”), include the accounts of the Company and its majority-owned direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Certain notes and other information have been condensed or omitted from the condensed consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the December 31, 2023 audited consolidated financial statements and notes thereto included in CVR Energy’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Our condensed consolidated financial statements include the consolidated results of CVR Partners, which is defined as a variable interest entity (“VIE”). As the 100% owner of the general partner of CVR Partners, the Company has the sole ability to direct the activities that most significantly impact the economic performance of CVR Partners and is considered the primary beneficiary. 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. The condensed consolidated financial statements are prepared in conformity with GAAP, which requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 2024 or any other interim or annual period. Recent Accounting Pronouncements - Accounting Standards Issued But Not Yet Implemented In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires enhanced income tax disclosures that reflect how operations and related tax risks, as well as how tax planning and operational opportunities, affect the tax rate and prospects for future cash flows. This standard is effective for the Company’s annual period beginning January 1, 2025 with early adoption permitted. The Company is evaluating the effects of adopting this new accounting guidance on its disclosures but does not currently expect adoption will have a material impact on the Company’s consolidated financial statements. The Company does not intend to early adopt this ASU. In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures , which includes requirements for more robust disclosures of significant segment expenses and measures of a segment’s profit and loss used in assessing performance. This standard is effective for the Company’s annual period beginning January 1, 2024 and interim periods beginning January 1, 2025 and should be applied retrospectively to all comparative periods. Early adoption is permitted. The Company is still evaluating the effects of adopting this new accounting guidance on its disclosures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | (3) Inventories Inventories consisted of the following: (in millions) March 31, 2024 December 31, 2023 Finished goods $ 264 $ 260 Raw materials 199 226 In-process inventories 39 21 Parts, supplies and other 99 97 Total inventories $ 601 $ 604 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | (4) Property, Plant, and Equipment Property, plant, and equipment consisted of the following: (in millions) March 31, 2024 December 31, 2023 Machinery and equipment $ 4,390 $ 4,287 Buildings and improvements 124 124 ROU finance leases 81 81 Land and improvements 74 74 Furniture and fixtures 29 33 Construction in progress 131 193 Other 15 15 4,844 4,807 Less: Accumulated depreciation and amortization (2,634) (2,586) Total property, plant, and equipment, net $ 2,210 $ 2,221 For the three months ended March 31, 2024 and 2023, depreciation and amortization expenses related to property, plant, and equipment were $56 million and $50 million, respectively, and capitalized interest was $1 million and $2 million, respectively. During the three months ended March 31, 2024, the Company did not identify the existence of an impairment indicator for our long-lived asset groups as outlined under the FASB Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | (5) Equity Method Investments We have variable interest in certain entities for which we have applied the VIE model under FASB ASC Topic 810, Consolidation and determined that these entities are variable interest entities. While we concluded we are not the primary beneficiary of these entities, we do have significant influence over their operating and financial policies and, therefore, applied the equity method of accounting for the respective investments. These investments are presented within Other long-term assets on our condensed consolidated financial statements: • CVR-CapturePoint Parent, LLC (“CVRP JV” ) - As part of a series of agreements entered into by our subsidiaries with unaffiliated parties with the objective to monetize certain tax credits under Section 45Q of the Internal Revenue Code of 1986 (“45Q Transaction”), we received a 50% interest in CVRP JV in connection with a modification to a carbon oxide contract (“CO Contract”) with a customer. • Enable South Central Pipeline, LLC (“Enable JV”) - Through our subsidiaries, we own a 40% interest in Enable JV, which operates a 12-inch 26-mile crude oil pipeline with a capacity of approximately 80,000 barrels per day that is connected to the Wynnewood Refinery. The remaining interest in Enable JV is owned by Enable Midstream Partners, LP, which was merged with Energy Transfer LP in December 2021. • Midway Pipeline, LLC (“Midway JV”) - Through our subsidiaries, we own a 50% interest in Midway JV, which operates a 16-inch 99-mile crude oil pipeline with a capacity of approximately 131,000 barrels per day which connects the Coffeyville Refinery to the Cushing, Oklahoma oil hub. The remaining interest in Midway JV is owned by Plains Pipeline, L.P. (in millions) CVRP JV Enable JV Midway JV Total Balance at December 31, 2023 $ 25 $ 5 $ 70 $ 100 Cash distributions (1) (3) (1) (2) (6) Equity income — 1 3 4 Balance at March 31, 2024 $ 22 $ 5 $ 71 $ 98 (1) Includes a $2 million distribution for CVRP JV exceeding certain carbon oxide capture and sequestration milestones during 2023. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | (6) Leases Balance Sheet Summary as of March 31, 2024 and December 31, 2023 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (in millions) Operating Leases Finance Leases Operating Leases Finance Leases ROU assets, net Pipeline and storage $ 11 $ 16 $ 12 $ 17 Railcars 12 — 12 — Real estate and other 30 13 29 14 Lease liability Pipelines and storage 11 28 12 28 Railcars 12 — 12 — Real estate and other 27 15 25 16 Lease Expense Summary for the Three Months Ended March 31, 2024 and 2023 We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three months ended March 31, 2024 and 2023, we recognized lease expense comprised of the following components: Three Months Ended (in millions) 2024 2023 Operating lease expense $ 4 $ 4 Finance lease expense: Amortization of ROU asset 1 1 Interest expense on lease liability 1 1 Short-term lease expense 3 2 The Company has entered into the following material lease commitments that have not yet commenced: • Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement (as amended, the “Messer Agreement”) with Messer LLC. Based on terms outlined in the Messer Agreement, the Company expects the lease to be classified as a finance lease with an estimated $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to occur in the second half of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information. |
Leases | (6) Leases Balance Sheet Summary as of March 31, 2024 and December 31, 2023 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (in millions) Operating Leases Finance Leases Operating Leases Finance Leases ROU assets, net Pipeline and storage $ 11 $ 16 $ 12 $ 17 Railcars 12 — 12 — Real estate and other 30 13 29 14 Lease liability Pipelines and storage 11 28 12 28 Railcars 12 — 12 — Real estate and other 27 15 25 16 Lease Expense Summary for the Three Months Ended March 31, 2024 and 2023 We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three months ended March 31, 2024 and 2023, we recognized lease expense comprised of the following components: Three Months Ended (in millions) 2024 2023 Operating lease expense $ 4 $ 4 Finance lease expense: Amortization of ROU asset 1 1 Interest expense on lease liability 1 1 Short-term lease expense 3 2 The Company has entered into the following material lease commitments that have not yet commenced: • Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement (as amended, the “Messer Agreement”) with Messer LLC. Based on terms outlined in the Messer Agreement, the Company expects the lease to be classified as a finance lease with an estimated $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to occur in the second half of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (7) Other Current Liabilities Other current liabilities were as follows: (in millions) March 31, 2024 December 31, 2023 Accrued Renewable Fuel Standard (“RFS”) obligation $ 294 $ 329 Accrued taxes other than income taxes 43 47 Personnel accruals 31 51 Accrued interest 22 26 Accrued income taxes 21 25 Deferred revenue 20 16 Share-based compensation 19 13 Operating lease liabilities 15 14 Derivatives 9 — Other accrued expenses and liabilities 10 25 Total other current liabilities $ 484 $ 546 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Finance Lease Obligations | (8) Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consisted of the following: (in millions) March 31, 2024 December 31, 2023 CVR Energy: 5.75% Senior Notes, due February 2028 $ 400 $ 400 8.50% Senior Notes, due January 2029 600 600 Unamortized debt issuance costs (5) (5) Total CVR Energy debt 995 995 Petroleum Segment: Finance lease obligations, net of current portion 35 37 Total Petroleum Segment finance lease obligations, net of current portion 35 37 Nitrogen Fertilizer Segment: 6.125% Senior Secured Notes, due June 2028 $ 550 $ 550 Unamortized debt issuance costs (3) (3) Total Nitrogen Fertilizer Segment debt 547 547 Total long-term debt and finance lease obligations, net of current portion 1,577 1,579 Current portion of long-term debt and finance lease obligations 8 606 Total long-term debt and finance lease obligations, including current portion $ 1,585 $ 2,185 Credit Agreements (in millions) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2024 Outstanding Letters of Credit Available Capacity as of March 31, 2024 Maturity Date CVR Energy: CVR Energy’s Amended and Restated ABL Credit Agreement (“CVR Energy ABL”) $ 275 $ — $ 24 $ 251 June 30, 2027 Nitrogen Fertilizer Segment: CVR Partners’ Credit Agreement (“CVR Partners ABL”) $ 43 $ — $ — $ 43 September 26, 2028 CVR Energy 2029 Notes - On December 21, 2023, CVR Energy completed the issuance of $600 million in aggregate principal amount of 8.50% Senior Notes, due 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually in arrears on February 15 and August 15 each year, commencing on February 15, 2024. The 2029 Notes mature on January 15, 2029, unless earlier redeemed or purchased. See Part II, Item 8 of the 2023 Form 10-K for further details of the 2029 Notes. In relation to the issuance of the 2029 Notes, the Company received $598 million of net cash proceeds, net of underwriting fees and certain other third-party fees and expenses associated with the offering. These proceeds were reserved for the payment of the Company’s 5.25% Senior Notes, due 2025 (the “2025 Notes”) on February 15, 2024, and were presented in Reserved funds for debt payment on our Condensed Consolidated Balance Sheets as of December 31, 2023. 2025 Notes - On December 21, 2023, the Company delivered a notice of redemption to the holders of its 2025 Notes that all outstanding amounts of the 2025 Notes, plus any accrued and unpaid interest to the redemption date, would be redeemed on February 15, 2024. As such, the outstanding balance of the $600 million principal amount of the 2025 Notes was classified as short-term as of December 31, 2023. On February 15, 2024, CVR Energy redeemed all of the outstanding 2025 Notes, at par, and settled accrued interest of approximately $16 million through the date of redemption. As a result of this transaction, the Company recognized in Interest expense, net a $1 million loss on extinguishment of debt on our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024, which consisted of the write-off of unamortized deferred financing costs. Covenant Compliance The Company and its subsidiaries were in compliance with all covenants under their respective debt instruments as of March 31, 2024. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (9) Revenue The following tables present the Company’s revenue disaggregated by major product, which include a reconciliation of the disaggregated revenue by the Company’s reportable segments: Three Months Ended March 31, 2024 (in millions) Petroleum Segment (1) Nitrogen Fertilizer Segment Other / Elimination Consolidated Gasoline $ 888 $ — $ — $ 888 Distillates (2) 767 — 10 777 Ammonia — 37 — 37 UAN — 76 — 76 Urea products — 5 — 5 Freight revenue (3) 5 6 — 11 Other products (4) 49 4 3 56 Revenue from product sales 1,709 128 13 1,850 Crude oil sales 13 — — 13 Total revenue $ 1,722 $ 128 $ 13 $ 1,863 Three Months Ended March 31, 2023 (in millions) Petroleum Segment (1) Nitrogen Fertilizer Segment Other / Elimination Consolidated Gasoline $ 1,010 $ — $ — $ 1,010 Distillates (2) 919 — 48 967 Ammonia — 38 — 38 UAN — 164 — 164 Urea products — 8 — 8 Freight revenue (3) 3 11 — 14 Other products (4) 33 5 19 57 Revenue from product sales 1,965 226 67 2,258 Crude oil sales 28 — — 28 Total revenue $ 1,993 $ 226 $ 67 $ 2,286 (1) The Petroleum Segment may incur broker commissions or transportation costs prior to the transfer on certain sales. The broker costs are expensed since the contract durations are less than one year. Transportation costs are accounted for as fulfillment costs and are expensed as incurred. (2) Distillates consist primarily of diesel fuel, kerosene, jet fuel, and renewable fuels. (3) 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. Freight revenue recognized by the Nitrogen Fertilizer Segment represents the pass-through finished goods delivery costs incurred prior to customer acceptance and are reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. (4) Other products for the Petroleum Segment consists primarily of (i) feedstock, heavy oils, and liquified petroleum gas sales, (ii) sulfur credits, and (iii) pipeline and processing fees. For the Nitrogen Fertilizer Segment, other products consists of sales of (i) nitric acid and (ii) carbon oxide, including sales made in connection with the 45Q Transaction and the noncash consideration received, which is recognized as the performance obligation associated with the CO Contract is satisfied over its term through April 2030. Revenue from the CO Contract is recognized over time based on carbon oxide volumes measured at delivery. The Other/Elimination columns include certain credits related to renewable fuel activity and eliminations of intercompany transactions. Remaining Performance Obligations We have spot and term contracts with customers and the transaction prices are either fixed or based on market indices (variable consideration). We do not disclose remaining performance obligations for contracts that have terms of one year or less and for contracts where the variable consideration was entirely allocated to an unsatisfied performance obligation. As of March 31, 2024, these contracts have a remaining duration of less than three years. As of March 31, 2024, the Nitrogen Fertilizer Segment had approximately $14 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Nitrogen Fertilizer Segment expects to recognize $4 million of these performance obligations as revenue by the end of 2024, an additional $5 million during 2025, and the remaining balance in 2026. Contract Balances The following table provides the balance sheet location and amounts of deferred revenue from contracts with customers for the Nitrogen Fertilizer Segment: Contract Balance Type Balance Sheet Location March 31, 2024 December 31, 2023 Deferred revenue Other current liabilities $ 20 $ 16 Long-term deferred revenue Other long-term liabilities 32 33 During the three months ended March 31, 2024 and 2023, the Company recognized revenue of $5 million and $12 million, respectively, that was included in the deferred revenue balances as of December 31, 2023 and December 31, 2022, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | (10) Derivative Financial Instruments The following outlines the net notional buy (sell) position of our commodity derivative instruments held as of March 31, 2024 and December 31, 2023: (in thousands of barrels) Commodity March 31, 2024 December 31, 2023 Forwards Crude 561 247 Swaps NYMEX Diesel Cracks (4,140) (6,780) Swaps NYMEX RBOB Cracks (1,200) (1,275) Swaps NYMEX 2-1-1 Cracks (2,130) (3,030) Futures Crude (180) — The following outlines the balances of our commodity derivative instruments after the effects of contract netting and allocation of collateral and their classifications on our Condensed Consolidated Balance Sheets. Refer to Note 11 (“Fair Value Measurements”) for the gross amounts of the commodity derivative instruments (before the effects of contract netting and allocation of collateral): March 31, 2024 December 31, 2023 (in millions) Assets Liabilities Assets Liabilities Other current assets $ 10 $ — $ 24 $ — Other long-term assets — — 1 — Other current liabilities — 9 — — The following table represents CVR Energy’s incurred realized and unrealized net gains (losses) from derivative activities, recorded in Cost of materials and other on the Condensed Consolidated Statements of Operations: Three Months Ended (in millions) 2024 2023 Commodity derivative instruments $ (18) $ 45 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (11) Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis The following tables set forth information about the assets and liabilities measured at fair value on a recurring basis, by input level, as of March 31, 2024 and December 31, 2023. Such amounts are presented on a gross basis, before the effects of netting and allocation of collateral. The Company elected to offset the fair value amounts recognized for derivative assets and liabilities executed with the same counterparty under a master netting arrangement, including fair value amounts recognized for the right to reclaim or the obligation to return cash collateral. March 31, 2024 Fair Value Hierarchy Total gross fair value Contract netting Collateral netting (1) Net value (in millions) Level 1 Level 2 Level 3 Assets Commodity derivative instruments $ — $ 20 $ — $ 20 $ (10) $ — $ 10 Liabilities Commodity derivative instruments — 19 — 19 (10) — 9 RFS — 294 — 294 — — 294 December 31, 2023 Fair Value Hierarchy Total gross fair value Contract netting Collateral netting (1) Net value (in millions) Level 1 Level 2 Level 3 Assets Commodity derivative instruments $ — $ 31 $ — $ 31 $ (6) $ — $ 25 Liabilities Commodity derivative instruments — 6 — 6 (6) — — RFS — 329 — 329 — — 329 (1) At March 31, 2024 and December 31, 2023, the Company had $4 million and $13 million of collateral under master netting arrangements not offset against the derivatives within Other current assets on the Condensed Consolidated Balance Sheets, respectively, primarily related to initial margin requirements. The Petroleum Segment’s commodity derivative contracts consist of exchange traded futures, commodity price swaps, and sale and purchase forwards that are measured at fair value using a market approach based on available broker quoted market prices of identical or similar instruments. Similarly, RFS obligations are measured at fair value using a market approach based on available broker quoted market RIN prices for each specific or closest vintage year. The Company had no transfers of assets or liabilities between any of the above levels during the three months ended March 31, 2024 and year ended December 31, 2023. Assets and liabilities measured at fair value on a nonrecurring basis CVR Partners performed a nonrecurring fair value measurement of the equity interest received as part of the 45Q Transaction in the first quarter of 2023. Such valuation used a combination of the market approach and the discounted cash flow methodology with key inputs including the discount rate, contractual and expected future cash flows, and market multiples. CVR Partners determined the estimated fair value of the consideration received to be $46 million, which is a non-recurring Level 3 measurement, as defined by FASB ASC Topic 820, Fair Value Measurements , based on the use of CVR Partners’ own assumptions described above. There are no other assets or liabilities that were measured at fair value on a nonrecurring basis for the periods presented. Assets and liabilities not required to be measured at fair value CVR Energy holds cash equivalents which consist primarily of bank time deposits with maturities of 90 days or less. Cash and cash equivalents and reserved funds had carrying and fair values of $644 million and $1.2 billion at March 31, 2024 and December 31, 2023, respectively, and are classified as Level 1 in the fair value hierarchy. Long-term debt of $1.5 billion and $2.1 billion at March 31, 2024 and December 31, 2023, respectively, had estimated fair values of $1.5 billion and $2.1 billion, respectively, and are classified as Level 2 in the fair value hierarchy. Other short-term financial assets and liabilities, which consist of restricted cash, accounts receivable, accounts payable, and operating and finance lease obligations, are carried at cost on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 and approximate their estimated fair values. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | (12) Share-Based Compensation A summary of compensation expense during the three months ended March 31, 2024 and 2023 is presented below: Three Months Ended (in millions) 2024 2023 CVR Partners - Phantom Unit Awards $ 2 $ 2 Incentive Unit Awards 8 7 Total share-based compensation expense $ 10 $ 9 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 from those disclosed in the 2023 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 to its consolidated financial statements. Crude Oil Supply Agreement The Petroleum Segment has a crude oil supply agreement with Gunvor USA LLC (“Gunvor”), which commenced on January 1, 2024 (as amended, the “Gunvor Crude Oil Supply Agreement”), pursuant to which Gunvor supplies the Petroleum Segment with certain crude oil and intermediation logistics helping to reduce the amount of inventory held at certain locations and mitigate crude oil pricing risk. The Gunvor Crude Oil Supply Agreement replaced a similar agreement with a different supplier that expired on December 31, 2023. Volumes contracted under these agreements, as a percentage of the total crude oil purchases (in barrels), were approximately 21% and 31% for the three months ended March 31, 2024 and 2023. The Gunvor Crude Oil Supply Agreement, which currently extends through January 31, 2026, is subject to automatic one-year renewals following the expiration of the initial term in the absence of either party providing 180 days’ notice of termination. As part of the transition of the crude oil supply agreement from Vitol to Gunvor, on December 31, 2023, the Company purchased the final inventory remaining under the crude oil supply agreement with Vitol and sold it to Gunvor on January 1, 2024. The inventory purchased from Vitol was included within Inventories on the Condensed Consolidated Balance Sheets as of December 31, 2023. 45Q Transaction Under the agreements entered into in connection with the 45Q Transaction, the Company’s indirect subsidiary CRNF is obligated to meet certain minimum quantities of carbon oxide supply each year during the term of the agreement and is subject to fees of up to $15 million per year (reduced pro rata for partial years) to the unaffiliated third-party investors, subject to an overall $45 million cap, if these minimum quantities are not delivered. CVR Partners issued a guarantee to the unaffiliated third-party investors and certain affiliates involved in the 45Q Transaction of the payment and performance obligations of CRNF and CVRP JV, which include the aforementioned fees. This guarantee has no impacts on the accounting records of CVR Partners unless the parties fail to comply with the terms of the 45Q Transaction contracts. Renewable Fuel Standard Coffeyville Resources Refining & Marketing, LLC (“CRRM”) and Wynnewood Refining Company, LLC (“WRC”, and together with CRRM, the “obligated-party subsidiaries”) are subject to the RFS implemented by the U.S. Environmental Protection Agency (the “EPA”), which requires obligated parties to either blend renewable fuels into their transportation fuels or purchase renewable fuel credits, known as RINs, in lieu of blending. The Petroleum Segment’s obligated-party subsidiaries are not able to blend the majority of their transportation fuels with renewable fuels and, unless their RFS obligations are waived or exempted, must either purchase RINs or obtain waiver credits for cellulosic biofuels in order to comply with the RFS. Additionally, the Petroleum Segment’s obligated-party subsidiaries purchase RINs generated from our renewable diesel operations, whose operating results are not included in either of our reportable segments, to partially satisfy their RFS obligations. For the three months ended March 31, 2024 and 2023, the Company’s obligated-party subsidiaries recognized a benefit of $51 million and $11 million, respectively, for their compliance with the RFS (based on the 2020 through 2024 renewable volume obligation (“RVO”), for the respective periods, excluding the impacts of any exemptions or waivers to which the Company’s obligated-party subsidiaries may be entitled). The recognized amounts are included within Cost of materials and other in the Condensed Consolidated Statements of Operations and represent costs to comply with the RFS obligation through purchasing of RINs not otherwise reduced by blending of ethanol, biodiesel, or renewable diesel. At each reporting period, to the extent RINs purchased and generated through blending are less than the RFS obligation (excluding the impact of exemptions or waivers to which the Company may be entitled), the remaining position is valued using RIN market prices at period end for each specific or closest vintage year. As of March 31, 2024 and December 31, 2023, the Company’s obligated-party subsidiaries’ RFS positions were approximately $294 million and $329 million, respectively, and are recorded in Other current liabilities in the Condensed Consolidated Balance Sheets. Litigation Call Option Coverage Case – In April 2024, in the lawsuit (the “Delaware Coverage Case”) filed by the Company and certain of its affiliates (the “Call Defendants”) against the Company’s primary and excess insurers (the “Insurers”) alleging breach of contract and breach of the implied covenant of good faith and fair dealing against the Insurers relating to their denial of coverage of the Call Defendants’ defense expenses and indemnity, as well as other conduct of the Insurers relating to the Company’s December 2022 settlement of the consolidated lawsuits (collectively, the “Call Option Lawsuits”) filed by purported former unitholders of CVR Refining, LP (“CVR Refining”) on behalf of themselves and an alleged class of similarly situated unitholders against the Call Defendants 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 including the August 2022 Stipulation, Compromise and Release (the “Settlement”), the Superior Court of the State of Delaware (the “Superior Court”) issued an order compelling the parties to engage in briefing relating to, among other matters, the summary judgment granted in favor of the Insurers by the 434 th Judicial District Court of Fort Bend County, Texas in the Insurer’s separate lawsuit (the “Texas Coverage Case”) against the Call Defendants seeking determination that the Insurers owe no indemnity coverage under policies with coverage limits of $50 million for the Settlement, which summary judgment the Call Defendants have appealed. While the Delaware Coverage Case and the Texas Coverage Case remain pending, the Company does not expect the outcome of these lawsuits to have a material adverse impact on the Company’s financial position, results of operations, or cash flows. RFS Disputes – Regarding WRC’s petitions for small refinery exemptions (“SREs”) for the 2017 to 2021 compliance periods which were denied by the EPA in April and June 2022 based on a new standard for evaluating SREs announced by the EPA in December 2021 and retroactively applied (collectively, the “2022 Denials”), the EPA has failed to act after the United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) vacated the 2022 Denials and remanded the SRE petitions of WRC and certain other small refineries back to the EPA, finding that the 2022 Denials were impermissibly retroactive and that the EPA’s interpretation of the SRE provisions of the RFS was contrary to law and arbitrary and capricious as applied to the Fifth Circuit petitioners’ SRE petitions. As the mandate in the Fifth Circuit was issued in January 2024, WRC considers the EPA to have again violated the RFS by failing to rule on those petitions within 90 days following issuance of the mandate and expects to file suit against the EPA for this violation. In WRC’s lawsuit against the EPA for the damages it sustained as a result of the EPA’s late grant of its SRE petition for the 2018 compliance period (which SRE petition was later denied by the EPA in the 2022 Denials), the United States Courts of Appeals for the District of Columbia Circuit (the “DC Circuit”) held oral argument in April 2024, though no ruling has yet been issued. Regarding WRC’s SRE petition for the 2022 compliance period which was denied by the EPA in July 2023 largely on the same grounds as the 2022 Denials, the Fifth Circuit stayed WRC’s obligations under the RFS for 2022 and held its lawsuit against the EPA in abeyance pending the outcome of the lawsuit filed by certain other small refineries against the EPA in the DC Circuit related to the 2022 Denials. The DC Circuit held oral argument in April 2024, though no ruling has yet been issued. Regarding WRC’s SRE petition for the 2023 compliance period, the EPA has failed to rule on its SRE petition within 90 days as required by the RFS. WRC filed suit against the EPA relating to such failure, which suit was withdrawn in April 2024 following the filing by the EPA of a declaration that the EPA did not intend to pursue claims against WRC relating to the 2023 compliance period pending outcome of the various pending SRE litigation. If the EPA fails to rule on WRC’s 2023 SRE petition, WRC expects to file suit against the EPA for this failure. WRC’s challenges to the EPA’s Final Rules issued in June 2022 and June 2023 establishing the 2020 to 2022 RVOs and 2023 to 2025 RVOs, respectively, also remain pending. The Company cannot yet determine at this time the outcomes of these matters. While we intend to prosecute these actions vigorously, if these matters are ultimately concluded in a manner adverse to the Company, they could have a material effect on the Company’s financial position, results of operations, or cash flows. Environmental, Health, and Safety (“EHS”) Matters Clean Air Act Matter - CRRM and certain of its affiliates settled claims brought in the United States District Court for the District of Kansas (“D. Kan”) by the United States, on behalf of the EPA, and the State of Kansas, on behalf of the Kansas Department of Health and Environment (“KDHE”) seeking both statutory and stipulated penalties primarily relating to the Coffeyville Refinery’s flares, heaters, and related matters. The terms of the settlement are set forth in a Consent Decree (“CD”) that was entered by the D. Kan on January 10, 2024. The EPA and KDHE sought stipulated penalties under a 2012 Consent Decree (the “Stipulated Claims”), which amount CRRM previously deposited into a commercial escrow account which were legally restricted for use and included in Other current assets on our Condensed Consolidated Balance Sheets; those escrowed funds were released in February 2024 and the settlement was paid. The settlement did not and is not expected in the future to have a material adverse impact on the Company’s financial position, results of operations, or cash flows. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | (14) Business Segments CVR Energy’s revenues are primarily derived from the two reportable segments: Petroleum and Nitrogen Fertilizer. The Company evaluates the performance of its segments based primarily on segment operating income (loss) and Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”). For the purposes of the business segments disclosure, the Company presents operating income (loss) as it is the most comparable measure to the amounts presented on the Condensed Consolidated Statements of Operations. The other amounts reflect renewable fuels transactions, intercompany eliminations, corporate cash and cash equivalents, income tax activities, and other corporate activities that are not allocated or aggregated to the reportable segments. The following table summarizes certain operating results and capital expenditures information by segment: Three Months Ended March 31, 2024 (in millions) Petroleum Segment Nitrogen Fertilizer Segment Other / Eliminations Consolidated Net sales $ 1,718 $ 128 $ 17 $ 1,863 Inter-segment fees and sales 4 — (4) — Total net sales 1,722 128 13 1,863 Operating income (loss) $ 118 $ 20 $ (15) $ 123 Interest income (expense) (20) Other income, net 4 Income before income tax expense $ 107 Depreciation and amortization $ 48 $ 19 $ 9 $ 76 Capital expenditures (1) 36 5 10 51 Three Months Ended March 31, 2023 (in millions) Petroleum Segment Nitrogen Fertilizer Segment Other / Eliminations Consolidated Net sales $ 1,987 $ 226 $ 73 $ 2,286 Inter-segment fees and sales 6 — (6) — Total net sales 1,993 226 67 2,286 Operating income (loss) $ 237 $ 109 $ (16) $ 330 Interest income (expense) (18) Other income, net 3 Income before income tax expense $ 315 Depreciation and amortization $ 46 $ 15 $ 7 $ 68 Capital expenditures (1) 42 4 13 59 The following table summarizes total assets by segment: (in millions) March 31, 2024 December 31, 2023 Petroleum $ 2,986 $ 2,978 Nitrogen Fertilizer 972 975 Other, including intersegment eliminations 135 754 Total assets $ 4,093 $ 4,707 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (15) Supplemental Cash Flow Information Cash flows related to income taxes, interest, leases, capital expenditures and deferred financing costs included in accounts payable were as follows: Three Months Ended (in millions) 2024 2023 Supplemental disclosures: Cash paid for income taxes, net of refunds $ 26 $ 4 Cash paid for interest 36 29 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4 4 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 2 1 Noncash investing and financing activities: Change in capital expenditures included in accounts payable (1) 4 4 Change in turnaround expenditures included in accounts payable 27 32 ROU assets obtained in exchange for new or modified operating lease liabilities 4 9 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. Cash, cash equivalents and restricted cash consisted of the following: (in millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 644 $ 581 Reserved funds (1) — 598 Restricted cash (2) — 7 Cash, cash equivalents and restricted cash $ 644 $ 1,186 (1) Funds reserved for the redemption of the 2025 Notes in February 2024. See Note 8 (“Long-Term Debt and Finance Lease Obligations”) for further discussion. (2) Restricted funds were released and paid in February 2024. See Note 13 (“Commitments and Contingencies”) for further discussion. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (16) Related Party Transactions Activity associated with the Company’s related party arrangements for the three months ended March 31, 2024 and 2023 is summarized below: Three Months Ended (in millions) 2024 2023 Sales to related parties: CVRP JV CO Contract (1) $ 1 $ 1 Purchases from related parties: Enable Joint Venture Transportation Agreement 3 3 Midway Joint Venture Agreement (2) 7 6 Payments: Dividends (3) 33 36 (1) Sales to related parties, included in Net sales in our Condensed Consolidated Statements of Operations, consists of CO sales to a CVRP JV subsidiary. (2) Purchases from related parties, included in Cost of materials and other in our Condensed Consolidated Statements of Operations, represents reimbursements for crude oil transportation services incurred on the Midway JV through the intermediary purchasing agent. (3) See below for a summary of the dividends paid to IEP during the three months ended March 31, 2024 and year ended December 31, 2023. Dividends to CVR Energy Stockholders Dividends, if any, including the payment, amount and timing thereof, are determined at the discretion of the Board. IEP, through its ownership of the Company’s common stock, is entitled to receive dividends that are declared and paid by the Company based on the number of shares held at each record date. The following tables present quarterly and special dividends paid to the Company’s stockholders, including IEP, during 2024 and 2023 (amounts presented in table below may not add to totals presented due to rounding): Quarterly Dividends Paid ( in millions ) Related Period Date Paid Quarterly Dividends Public Stockholders IEP Total 2023 - 4th Quarter March 11, 2024 $ 0.50 $ 17 $ 33 $ 50 Quarterly Dividends Paid ( in millions ) Related Period Date Paid Quarterly Dividends Public Stockholders IEP Total 2022 - 4th Quarter March 13, 2023 $ 0.50 $ 15 $ 36 $ 50 2023 - 1st Quarter May 22, 2023 $ 0.50 $ 15 $ 36 $ 50 2023 - 2nd Quarter August 21, 2023 0.50 15 36 50 2023 - 3rd Quarter November 20, 2023 0.50 17 33 50 Total 2023 quarterly dividends $ 2.00 $ 61 $ 140 $ 201 Special Dividends Paid ( in millions ) Related Period Date Paid Special Dividends Public Stockholders IEP Total 2023 - 2nd Quarter August 21, 2023 $ 1.00 $ 29 $ 71 $ 101 2023 - 3rd Quarter November 20, 2023 1.50 51 100 151 Total 2023 special dividends $ 2.50 $ 80 $ 171 $ 251 For the first quarter of 2024, the Company, upon approval by the Board on April 29, 2024, declared a cash dividend of $0.50 per share, or $50 million, which is payable May 20, 2024 to shareholders of record as of May 13, 2024. Of this amount, IEP will receive $33 million due to its ownership interest in the Company’s shares. Distributions to CVR Partners’ Unitholders Distributions, if any, including the payment, amount and timing thereof, and UAN GP Board’s distribution policy, including the definition of available cash, are subject to change at the discretion of the UAN GP Board. The following tables present quarterly distributions paid by CVR Partners to CVR Partners’ unitholders, including amounts received by the Company, during 2024 and 2023 (amounts presented in tables below may not add to totals presented due to rounding): Quarterly Distributions Paid (in millions) Related Period Date Paid Quarterly Distributions Public CVR Energy Total 2023 - 4th Quarter March 11, 2024 $ 1.68 $ 11 $ 7 $ 18 Quarterly Distributions Paid (in millions) Related Period Date Paid Quarterly Distributions Public CVR Energy Total 2022 - 4th Quarter March 13, 2023 $ 10.50 $ 70 $ 41 $ 111 2023 - 1st Quarter May 22, 2023 10.43 70 41 110 2023 - 2nd Quarter August 21, 2023 4.14 28 16 44 2023 - 3rd Quarter November 20, 2023 1.55 10 6 16 Total 2023 quarterly distributions $ 26.62 $ 178 $ 104 $ 281 For the first quarter of 2024, CVR Partners, upon approval by the UAN GP Board on April 29, 2024, declared a distribution of $1.92 per common unit, or $20 million, which is payable May 20, 2024 to unitholders of record as of May 13, 2024. Of this amount, CVR Energy will receive approximately $7 million, with the remaining amount payable to public unitholders. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 82 | $ 195 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Subsequent Events | Subsequent Events - The Company evaluated subsequent events, if any, that would require an adjustment to the Company’s condensed consolidated financial statements or require disclosure in the notes to the condensed consolidated financial statements through the date of issuance of the condensed consolidated financial statements. Where applicable, the notes to these condensed consolidated financial statements have been updated to discuss all significant subsequent events which have occurred. |
Basis of Presentation | The accompanying condensed consolidated financial statements, 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 (“SEC”), include the accounts of the Company and its majority-owned direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Certain notes and other information have been condensed or omitted from the condensed consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the December 31, 2023 audited consolidated financial statements and notes thereto included in CVR Energy’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Our condensed consolidated financial statements include the consolidated results of CVR Partners, which is defined as a variable interest entity (“VIE”). As the 100% owner of the general partner of CVR Partners, the Company has the sole ability to direct the activities that most significantly impact the economic performance of CVR Partners and is considered the primary beneficiary. 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. The condensed consolidated financial statements are prepared in conformity with GAAP, which requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 2024 or any other interim or annual period. |
Recent Accounting Pronouncements - Accounting Standards Issued But Not Yet Implemented | Recent Accounting Pronouncements - Accounting Standards Issued But Not Yet Implemented In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires enhanced income tax disclosures that reflect how operations and related tax risks, as well as how tax planning and operational opportunities, affect the tax rate and prospects for future cash flows. This standard is effective for the Company’s annual period beginning January 1, 2025 with early adoption permitted. The Company is evaluating the effects of adopting this new accounting guidance on its disclosures but does not currently expect adoption will have a material impact on the Company’s consolidated financial statements. The Company does not intend to early adopt this ASU. In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures , which includes requirements for more robust disclosures of significant segment expenses and measures of a segment’s profit and loss used in assessing performance. This standard is effective for the Company’s annual period beginning January 1, 2024 and interim periods beginning January 1, 2025 and should be applied retrospectively to all comparative periods. Early adoption is permitted. The Company is still evaluating the effects of adopting this new accounting guidance on its disclosures. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: (in millions) March 31, 2024 December 31, 2023 Finished goods $ 264 $ 260 Raw materials 199 226 In-process inventories 39 21 Parts, supplies and other 99 97 Total inventories $ 601 $ 604 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant, and equipment consisted of the following: (in millions) March 31, 2024 December 31, 2023 Machinery and equipment $ 4,390 $ 4,287 Buildings and improvements 124 124 ROU finance leases 81 81 Land and improvements 74 74 Furniture and fixtures 29 33 Construction in progress 131 193 Other 15 15 4,844 4,807 Less: Accumulated depreciation and amortization (2,634) (2,586) Total property, plant, and equipment, net $ 2,210 $ 2,221 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | (in millions) CVRP JV Enable JV Midway JV Total Balance at December 31, 2023 $ 25 $ 5 $ 70 $ 100 Cash distributions (1) (3) (1) (2) (6) Equity income — 1 3 4 Balance at March 31, 2024 $ 22 $ 5 $ 71 $ 98 (1) Includes a $2 million distribution for CVRP JV exceeding certain carbon oxide capture and sequestration milestones during 2023. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Right of Use Asset and Lease Liability Balances for Operating and Finance Leases | The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (in millions) Operating Leases Finance Leases Operating Leases Finance Leases ROU assets, net Pipeline and storage $ 11 $ 16 $ 12 $ 17 Railcars 12 — 12 — Real estate and other 30 13 29 14 Lease liability Pipelines and storage 11 28 12 28 Railcars 12 — 12 — Real estate and other 27 15 25 16 |
Schedule of Lease Expense, Lease Terms, and Discount Rates | For the three months ended March 31, 2024 and 2023, we recognized lease expense comprised of the following components: Three Months Ended (in millions) 2024 2023 Operating lease expense $ 4 $ 4 Finance lease expense: Amortization of ROU asset 1 1 Interest expense on lease liability 1 1 Short-term lease expense 3 2 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities were as follows: (in millions) March 31, 2024 December 31, 2023 Accrued Renewable Fuel Standard (“RFS”) obligation $ 294 $ 329 Accrued taxes other than income taxes 43 47 Personnel accruals 31 51 Accrued interest 22 26 Accrued income taxes 21 25 Deferred revenue 20 16 Share-based compensation 19 13 Operating lease liabilities 15 14 Derivatives 9 — Other accrued expenses and liabilities 10 25 Total other current liabilities $ 484 $ 546 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt and Finance Lease Obligations | Long-term debt and finance lease obligations consisted of the following: (in millions) March 31, 2024 December 31, 2023 CVR Energy: 5.75% Senior Notes, due February 2028 $ 400 $ 400 8.50% Senior Notes, due January 2029 600 600 Unamortized debt issuance costs (5) (5) Total CVR Energy debt 995 995 Petroleum Segment: Finance lease obligations, net of current portion 35 37 Total Petroleum Segment finance lease obligations, net of current portion 35 37 Nitrogen Fertilizer Segment: 6.125% Senior Secured Notes, due June 2028 $ 550 $ 550 Unamortized debt issuance costs (3) (3) Total Nitrogen Fertilizer Segment debt 547 547 Total long-term debt and finance lease obligations, net of current portion 1,577 1,579 Current portion of long-term debt and finance lease obligations 8 606 Total long-term debt and finance lease obligations, including current portion $ 1,585 $ 2,185 Credit Agreements (in millions) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2024 Outstanding Letters of Credit Available Capacity as of March 31, 2024 Maturity Date CVR Energy: CVR Energy’s Amended and Restated ABL Credit Agreement (“CVR Energy ABL”) $ 275 $ — $ 24 $ 251 June 30, 2027 Nitrogen Fertilizer Segment: CVR Partners’ Credit Agreement (“CVR Partners ABL”) $ 43 $ — $ — $ 43 September 26, 2028 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Major Product | The following tables present the Company’s revenue disaggregated by major product, which include a reconciliation of the disaggregated revenue by the Company’s reportable segments: Three Months Ended March 31, 2024 (in millions) Petroleum Segment (1) Nitrogen Fertilizer Segment Other / Elimination Consolidated Gasoline $ 888 $ — $ — $ 888 Distillates (2) 767 — 10 777 Ammonia — 37 — 37 UAN — 76 — 76 Urea products — 5 — 5 Freight revenue (3) 5 6 — 11 Other products (4) 49 4 3 56 Revenue from product sales 1,709 128 13 1,850 Crude oil sales 13 — — 13 Total revenue $ 1,722 $ 128 $ 13 $ 1,863 Three Months Ended March 31, 2023 (in millions) Petroleum Segment (1) Nitrogen Fertilizer Segment Other / Elimination Consolidated Gasoline $ 1,010 $ — $ — $ 1,010 Distillates (2) 919 — 48 967 Ammonia — 38 — 38 UAN — 164 — 164 Urea products — 8 — 8 Freight revenue (3) 3 11 — 14 Other products (4) 33 5 19 57 Revenue from product sales 1,965 226 67 2,258 Crude oil sales 28 — — 28 Total revenue $ 1,993 $ 226 $ 67 $ 2,286 (1) The Petroleum Segment may incur broker commissions or transportation costs prior to the transfer on certain sales. The broker costs are expensed since the contract durations are less than one year. Transportation costs are accounted for as fulfillment costs and are expensed as incurred. (2) Distillates consist primarily of diesel fuel, kerosene, jet fuel, and renewable fuels. (3) 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. Freight revenue recognized by the Nitrogen Fertilizer Segment represents the pass-through finished goods delivery costs incurred prior to customer acceptance and are reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. (4) Other products for the Petroleum Segment consists primarily of (i) feedstock, heavy oils, and liquified petroleum gas sales, (ii) sulfur credits, and (iii) pipeline and processing fees. For the Nitrogen Fertilizer Segment, other products consists of sales of (i) nitric acid and (ii) carbon oxide, including sales made in connection with the 45Q Transaction and the noncash consideration received, which is recognized as the performance obligation associated with the CO Contract is satisfied over its term through April 2030. Revenue from the CO Contract is recognized over time based on carbon oxide volumes measured at delivery. The Other/Elimination columns include certain credits related to renewable fuel activity and eliminations of intercompany transactions. |
Schedule of Deferred Revenue from Contracts with Customers | The following table provides the balance sheet location and amounts of deferred revenue from contracts with customers for the Nitrogen Fertilizer Segment: Contract Balance Type Balance Sheet Location March 31, 2024 December 31, 2023 Deferred revenue Other current liabilities $ 20 $ 16 Long-term deferred revenue Other long-term liabilities 32 33 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Positions Held | The following outlines the net notional buy (sell) position of our commodity derivative instruments held as of March 31, 2024 and December 31, 2023: (in thousands of barrels) Commodity March 31, 2024 December 31, 2023 Forwards Crude 561 247 Swaps NYMEX Diesel Cracks (4,140) (6,780) Swaps NYMEX RBOB Cracks (1,200) (1,275) Swaps NYMEX 2-1-1 Cracks (2,130) (3,030) Futures Crude (180) — |
Schedule of Derivative Offsetting Assets | The following outlines the balances of our commodity derivative instruments after the effects of contract netting and allocation of collateral and their classifications on our Condensed Consolidated Balance Sheets. Refer to Note 11 (“Fair Value Measurements”) for the gross amounts of the commodity derivative instruments (before the effects of contract netting and allocation of collateral): March 31, 2024 December 31, 2023 (in millions) Assets Liabilities Assets Liabilities Other current assets $ 10 $ — $ 24 $ — Other long-term assets — — 1 — Other current liabilities — 9 — — |
Schedule of Derivative Offsetting Liabilities | The following outlines the balances of our commodity derivative instruments after the effects of contract netting and allocation of collateral and their classifications on our Condensed Consolidated Balance Sheets. Refer to Note 11 (“Fair Value Measurements”) for the gross amounts of the commodity derivative instruments (before the effects of contract netting and allocation of collateral): March 31, 2024 December 31, 2023 (in millions) Assets Liabilities Assets Liabilities Other current assets $ 10 $ — $ 24 $ — Other long-term assets — — 1 — Other current liabilities — 9 — — |
Schedule of Gains (Losses) on Derivatives | The following table represents CVR Energy’s incurred realized and unrealized net gains (losses) from derivative activities, recorded in Cost of materials and other on the Condensed Consolidated Statements of Operations: Three Months Ended (in millions) 2024 2023 Commodity derivative instruments $ (18) $ 45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables set forth information about the assets and liabilities measured at fair value on a recurring basis, by input level, as of March 31, 2024 and December 31, 2023. Such amounts are presented on a gross basis, before the effects of netting and allocation of collateral. The Company elected to offset the fair value amounts recognized for derivative assets and liabilities executed with the same counterparty under a master netting arrangement, including fair value amounts recognized for the right to reclaim or the obligation to return cash collateral. March 31, 2024 Fair Value Hierarchy Total gross fair value Contract netting Collateral netting (1) Net value (in millions) Level 1 Level 2 Level 3 Assets Commodity derivative instruments $ — $ 20 $ — $ 20 $ (10) $ — $ 10 Liabilities Commodity derivative instruments — 19 — 19 (10) — 9 RFS — 294 — 294 — — 294 December 31, 2023 Fair Value Hierarchy Total gross fair value Contract netting Collateral netting (1) Net value (in millions) Level 1 Level 2 Level 3 Assets Commodity derivative instruments $ — $ 31 $ — $ 31 $ (6) $ — $ 25 Liabilities Commodity derivative instruments — 6 — 6 (6) — — RFS — 329 — 329 — — 329 (1) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | A summary of compensation expense during the three months ended March 31, 2024 and 2023 is presented below: Three Months Ended (in millions) 2024 2023 CVR Partners - Phantom Unit Awards $ 2 $ 2 Incentive Unit Awards 8 7 Total share-based compensation expense $ 10 $ 9 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results and Capital Expenditures Information by Segment | The following table summarizes certain operating results and capital expenditures information by segment: Three Months Ended March 31, 2024 (in millions) Petroleum Segment Nitrogen Fertilizer Segment Other / Eliminations Consolidated Net sales $ 1,718 $ 128 $ 17 $ 1,863 Inter-segment fees and sales 4 — (4) — Total net sales 1,722 128 13 1,863 Operating income (loss) $ 118 $ 20 $ (15) $ 123 Interest income (expense) (20) Other income, net 4 Income before income tax expense $ 107 Depreciation and amortization $ 48 $ 19 $ 9 $ 76 Capital expenditures (1) 36 5 10 51 Three Months Ended March 31, 2023 (in millions) Petroleum Segment Nitrogen Fertilizer Segment Other / Eliminations Consolidated Net sales $ 1,987 $ 226 $ 73 $ 2,286 Inter-segment fees and sales 6 — (6) — Total net sales 1,993 226 67 2,286 Operating income (loss) $ 237 $ 109 $ (16) $ 330 Interest income (expense) (18) Other income, net 3 Income before income tax expense $ 315 Depreciation and amortization $ 46 $ 15 $ 7 $ 68 Capital expenditures (1) 42 4 13 59 The following table summarizes total assets by segment: (in millions) March 31, 2024 December 31, 2023 Petroleum $ 2,986 $ 2,978 Nitrogen Fertilizer 972 975 Other, including intersegment eliminations 135 754 Total assets $ 4,093 $ 4,707 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flows Related to Income Taxes, Interest, Leases, Capital Expenditures, and Deferred Financing Costs included in Accounts Payable, and Non-Cash Dividends | Cash flows related to income taxes, interest, leases, capital expenditures and deferred financing costs included in accounts payable were as follows: Three Months Ended (in millions) 2024 2023 Supplemental disclosures: Cash paid for income taxes, net of refunds $ 26 $ 4 Cash paid for interest 36 29 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4 4 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 2 1 Noncash investing and financing activities: Change in capital expenditures included in accounts payable (1) 4 4 Change in turnaround expenditures included in accounts payable 27 32 ROU assets obtained in exchange for new or modified operating lease liabilities 4 9 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash consisted of the following: (in millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 644 $ 581 Reserved funds (1) — 598 Restricted cash (2) — 7 Cash, cash equivalents and restricted cash $ 644 $ 1,186 (1) Funds reserved for the redemption of the 2025 Notes in February 2024. See Note 8 (“Long-Term Debt and Finance Lease Obligations”) for further discussion. (2) Restricted funds were released and paid in February 2024. See Note 13 (“Commitments and Contingencies”) for further discussion. |
Schedule of Restricted Cash | Cash, cash equivalents and restricted cash consisted of the following: (in millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 644 $ 581 Reserved funds (1) — 598 Restricted cash (2) — 7 Cash, cash equivalents and restricted cash $ 644 $ 1,186 (1) Funds reserved for the redemption of the 2025 Notes in February 2024. See Note 8 (“Long-Term Debt and Finance Lease Obligations”) for further discussion. (2) Restricted funds were released and paid in February 2024. See Note 13 (“Commitments and Contingencies”) for further discussion. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Activity associated with the Company’s related party arrangements for the three months ended March 31, 2024 and 2023 is summarized below: Three Months Ended (in millions) 2024 2023 Sales to related parties: CVRP JV CO Contract (1) $ 1 $ 1 Purchases from related parties: Enable Joint Venture Transportation Agreement 3 3 Midway Joint Venture Agreement (2) 7 6 Payments: Dividends (3) 33 36 (1) Sales to related parties, included in Net sales in our Condensed Consolidated Statements of Operations, consists of CO sales to a CVRP JV subsidiary. (2) Purchases from related parties, included in Cost of materials and other in our Condensed Consolidated Statements of Operations, represents reimbursements for crude oil transportation services incurred on the Midway JV through the intermediary purchasing agent. (3) See below for a summary of the dividends paid to IEP during the three months ended March 31, 2024 and year ended December 31, 2023. |
Schedule of Dividends Paid | The following tables present quarterly and special dividends paid to the Company’s stockholders, including IEP, during 2024 and 2023 (amounts presented in table below may not add to totals presented due to rounding): Quarterly Dividends Paid ( in millions ) Related Period Date Paid Quarterly Dividends Public Stockholders IEP Total 2023 - 4th Quarter March 11, 2024 $ 0.50 $ 17 $ 33 $ 50 Quarterly Dividends Paid ( in millions ) Related Period Date Paid Quarterly Dividends Public Stockholders IEP Total 2022 - 4th Quarter March 13, 2023 $ 0.50 $ 15 $ 36 $ 50 2023 - 1st Quarter May 22, 2023 $ 0.50 $ 15 $ 36 $ 50 2023 - 2nd Quarter August 21, 2023 0.50 15 36 50 2023 - 3rd Quarter November 20, 2023 0.50 17 33 50 Total 2023 quarterly dividends $ 2.00 $ 61 $ 140 $ 201 Special Dividends Paid ( in millions ) Related Period Date Paid Special Dividends Public Stockholders IEP Total 2023 - 2nd Quarter August 21, 2023 $ 1.00 $ 29 $ 71 $ 101 2023 - 3rd Quarter November 20, 2023 1.50 51 100 151 Total 2023 special dividends $ 2.50 $ 80 $ 171 $ 251 |
Schedule of Distributions Paid | The following tables present quarterly distributions paid by CVR Partners to CVR Partners’ unitholders, including amounts received by the Company, during 2024 and 2023 (amounts presented in tables below may not add to totals presented due to rounding): Quarterly Distributions Paid (in millions) Related Period Date Paid Quarterly Distributions Public CVR Energy Total 2023 - 4th Quarter March 11, 2024 $ 1.68 $ 11 $ 7 $ 18 Quarterly Distributions Paid (in millions) Related Period Date Paid Quarterly Distributions Public CVR Energy Total 2022 - 4th Quarter March 13, 2023 $ 10.50 $ 70 $ 41 $ 111 2023 - 1st Quarter May 22, 2023 10.43 70 41 110 2023 - 2nd Quarter August 21, 2023 4.14 28 16 44 2023 - 3rd Quarter November 20, 2023 1.55 10 6 16 Total 2023 quarterly distributions $ 26.62 $ 178 $ 104 $ 281 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CVR Partners | ||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | ||
Percentage of interest held by the public | 63% | |
Cost, inclusive of transaction costs, of repurchase of outstanding common units | $ 0 | $ 0 |
CVR Services | CVR Partners | ||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | ||
Percentage of common units owned by wholly-owned subsidiary | 37% | |
CVR Services | CVR GP | ||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | ||
Percentage of common units owned by general partner | 100% | |
Majority Shareholder | ||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | ||
Ownership percentage held by controlling stockholder | 66% |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership percentage | 100% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 264 | $ 260 |
Raw materials | 199 | 226 |
In-process inventories | 39 | 21 |
Parts, supplies and other | 99 | 97 |
Total inventories | $ 601 | $ 604 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant, and Equipment | ||
Finance lease, right-of-use asset, statement of financial position [extensible list] | Total property, plant, and equipment, net | Total property, plant, and equipment, net |
ROU finance leases | $ 81 | $ 81 |
Property, plant and equipment, gross | 4,844 | 4,807 |
Less: Accumulated depreciation and amortization | (2,634) | (2,586) |
Total property, plant, and equipment, net | 2,210 | 2,221 |
Machinery and equipment | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 4,390 | 4,287 |
Buildings and improvements | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 124 | 124 |
Land and improvements | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 74 | 74 |
Furniture and fixtures | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 29 | 33 |
Construction in progress | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 131 | 193 |
Other | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | $ 15 | $ 15 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant, and Equipment | ||
Depreciation and amortization | $ 76 | $ 68 |
Interest costs capitalized | 1 | 2 |
Property, Plant and Equipment | ||
Property, Plant, and Equipment | ||
Depreciation and amortization | $ 56 | $ 50 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 in mi bbl | |
CVRP JV | |
Related Party Transaction [Line Items] | |
Ownership percentage in joint venture | 50% |
Enable JV | |
Related Party Transaction [Line Items] | |
Ownership percentage in joint venture | 40% |
Pipeline diameter (in inches) | in | 12 |
Pipeline length (in miles) | mi | 26 |
Pipeline capacity, barrels per day | bbl | 80,000 |
Midway JV | |
Related Party Transaction [Line Items] | |
Ownership percentage in joint venture | 50% |
Pipeline diameter (in inches) | in | 16 |
Pipeline length (in miles) | mi | 99 |
Pipeline capacity, barrels per day | bbl | 131,000 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity Method Investments [Roll Forward] | |||
Balance at beginning of period | $ 100 | ||
Cash distributions | (6) | ||
Equity income | 4 | $ 3 | |
Balance at end of period | 98 | $ 100 | |
Cash distributions | 6 | ||
CVRP JV | |||
Equity Method Investments [Roll Forward] | |||
Balance at beginning of period | 25 | ||
Cash distributions | (3) | (2) | |
Equity income | 0 | ||
Balance at end of period | 22 | 25 | |
Cash distributions | 3 | 2 | |
Enable JV | |||
Equity Method Investments [Roll Forward] | |||
Balance at beginning of period | 5 | ||
Cash distributions | (1) | ||
Equity income | 1 | ||
Balance at end of period | 5 | 5 | |
Cash distributions | 1 | ||
Midway JV | |||
Equity Method Investments [Roll Forward] | |||
Balance at beginning of period | 70 | ||
Cash distributions | (2) | ||
Equity income | 3 | ||
Balance at end of period | 71 | $ 70 | |
Cash distributions | $ 2 |
Leases - Balance Sheet Summary
Leases - Balance Sheet Summary (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Pipeline and storage | ||
Operating Leases | ||
ROU assets, net | $ 11 | $ 12 |
Lease liability | 11 | 12 |
Finance Leases | ||
ROU assets, net | 16 | 17 |
Lease liability | 28 | 28 |
Railcars | ||
Operating Leases | ||
ROU assets, net | 12 | 12 |
Lease liability | 12 | 12 |
Finance Leases | ||
ROU assets, net | 0 | 0 |
Lease liability | 0 | 0 |
Real estate and other | ||
Operating Leases | ||
ROU assets, net | 30 | 29 |
Lease liability | 27 | 25 |
Finance Leases | ||
ROU assets, net | 13 | 14 |
Lease liability | $ 15 | $ 16 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease expense | $ 4 | $ 4 |
Finance lease expense: | ||
Amortization of ROU asset | 1 | 1 |
Interest expense on lease liability | 1 | 1 |
Short-term lease expense | $ 3 | $ 2 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Finance lease not yet commenced | $ 20 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease not yet commenced | $ 25 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Accrued Renewable Fuel Standard (“RFS”) obligation | $ 294 | $ 329 |
Accrued taxes other than income taxes | 43 | 47 |
Personnel accruals | 31 | 51 |
Accrued interest | 22 | 26 |
Accrued income taxes | 21 | 25 |
Deferred revenue | 20 | 16 |
Share-based compensation | $ 19 | $ 13 |
Operating lease, liability, current, statement of financial position [extensible list] | Total other current liabilities | Total other current liabilities |
Operating lease liabilities | $ 15 | $ 14 |
Derivatives | 9 | 0 |
Other accrued expenses and liabilities | 10 | 25 |
Total other current liabilities | $ 484 | $ 546 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Finance lease, liability, noncurrent, statement of financial position [extensible list] | Total long-term debt and finance lease obligations, net of current portion | Total long-term debt and finance lease obligations, net of current portion |
Total long-term debt and finance lease obligations, net of current portion | $ 1,577 | $ 1,579 |
Current portion of finance lease obligations | 8 | 606 |
Total long-term debt and finance lease obligations, including current portion | 1,585 | 2,185 |
Petroleum Segment | ||
Debt Instrument [Line Items] | ||
Finance lease obligations, net of current portion | 35 | 37 |
Total long-term debt and finance lease obligations, net of current portion | 35 | 37 |
Nitrogen Fertilizer Segment | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (3) | (3) |
Total debt | $ 547 | 547 |
6.125% Senior Secured Notes, due June 2028 | Senior Notes | Nitrogen Fertilizer Segment | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.125% | |
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 550 | 550 |
CVR Energy | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (5) | (5) |
Total debt | $ 995 | 995 |
CVR Energy | 5.75% Senior Notes, due February 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.75% | |
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 400 | 400 |
CVR Energy | 8.50% Senior Notes, due January 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.50% | |
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 600 | $ 600 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Credit Agreement (Details) - Line of Credit - Revolving Credit Facility $ in Millions | Mar. 31, 2024 USD ($) |
CVR Energy’s Amended and Restated ABL Credit Agreement (“CVR Energy ABL”) | CVR Energy | |
Line of Credit Facility [Line Items] | |
Total Available Borrowing Capacity | $ 275 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 24 |
Available Capacity | 251 |
CVR Partners’ Credit Agreement (“CVR Partners ABL”) | Nitrogen Fertilizer Segment | |
Line of Credit Facility [Line Items] | |
Total Available Borrowing Capacity | 43 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 0 |
Available Capacity | $ 43 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - CVR Energy (Details) - Senior Notes - CVR Energy - USD ($) | 3 Months Ended | |||
Feb. 15, 2024 | Dec. 21, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
8.50% Senior Notes, due January 2029 | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount of private offering | $ 600,000,000 | |||
Stated interest rate | 8.50% | |||
Proceeds from notes payable | $ 598,000,000 | |||
5.25% Senior Notes, due February 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount of private offering | $ 600,000,000 | |||
Stated interest rate | 5.25% | |||
Repayments of senior debt | $ 16,000,000 | |||
Loss on extinguishment of debt | $ 1,000,000 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Major Product (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,863 | $ 2,286 |
Revenue from product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 1,850 | 2,258 |
Gasoline | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 888 | 1,010 |
Distillates | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 777 | 967 |
Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 37 | 38 |
UAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 76 | 164 |
Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 5 | 8 |
Freight revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 11 | 14 |
Other products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 56 | 57 |
Crude oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 13 | 28 |
Petroleum Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,718 | 1,987 |
Nitrogen Fertilizer Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 128 | 226 |
Operating Segments | Petroleum Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,722 | 1,993 |
Operating Segments | Petroleum Segment | Revenue from product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 1,709 | 1,965 |
Operating Segments | Petroleum Segment | Gasoline | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 888 | 1,010 |
Operating Segments | Petroleum Segment | Distillates | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 767 | 919 |
Operating Segments | Petroleum Segment | Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Operating Segments | Petroleum Segment | UAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Operating Segments | Petroleum Segment | Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Operating Segments | Petroleum Segment | Freight revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 5 | 3 |
Operating Segments | Petroleum Segment | Other products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 49 | 33 |
Operating Segments | Petroleum Segment | Crude oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 13 | 28 |
Operating Segments | Nitrogen Fertilizer Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 128 | 226 |
Operating Segments | Nitrogen Fertilizer Segment | Revenue from product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 128 | 226 |
Operating Segments | Nitrogen Fertilizer Segment | Gasoline | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Operating Segments | Nitrogen Fertilizer Segment | Distillates | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Operating Segments | Nitrogen Fertilizer Segment | Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 37 | 38 |
Operating Segments | Nitrogen Fertilizer Segment | UAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 76 | 164 |
Operating Segments | Nitrogen Fertilizer Segment | Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 5 | 8 |
Operating Segments | Nitrogen Fertilizer Segment | Freight revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 6 | 11 |
Operating Segments | Nitrogen Fertilizer Segment | Other products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 4 | 5 |
Operating Segments | Nitrogen Fertilizer Segment | Crude oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13 | 67 |
Other / Elimination | Revenue from product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 13 | 67 |
Other / Elimination | Gasoline | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | Distillates | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 10 | 48 |
Other / Elimination | Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | UAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | Freight revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 0 | 0 |
Other / Elimination | Other products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | 3 | 19 |
Other / Elimination | Crude oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from product sales | $ 0 | $ 0 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 3 years |
Nitrogen Fertilizer Segment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 14 |
Nitrogen Fertilizer Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Remaining performance obligation | $ 4 |
Nitrogen Fertilizer Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligation | $ 5 |
Revenue - Revenue from Contract
Revenue - Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Contract with Customer, Liability, Activity [Line Items] | ||
Deferred revenue | $ 20 | $ 16 |
Nitrogen Fertilizer Segment | ||
Schedule of Contract with Customer, Liability, Activity [Line Items] | ||
Deferred revenue | 20 | 16 |
Long-term deferred revenue | $ 32 | $ 33 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Recognized revenue | $ 5 | $ 12 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Outstanding Positions Held (Details) - MBbls MBbls in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Forwards | Crude | Purchase Commitments | ||
Derivative [Line Items] | ||
Outstanding notional buy (sell) positions | (561) | (247) |
Swaps | NYMEX Diesel Cracks | Sell Position | ||
Derivative [Line Items] | ||
Outstanding notional buy (sell) positions | (4,140) | (6,780) |
Swaps | NYMEX RBOB Cracks | Sell Position | ||
Derivative [Line Items] | ||
Outstanding notional buy (sell) positions | (1,200) | (1,275) |
Swaps | NYMEX 2-1-1 Cracks | Sell Position | ||
Derivative [Line Items] | ||
Outstanding notional buy (sell) positions | (2,130) | (3,030) |
Futures | Crude | Sell Position | ||
Derivative [Line Items] | ||
Outstanding notional buy (sell) positions | (180) | 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other current assets | ||
Assets | ||
Derivative assets | $ 10 | $ 24 |
Derivative liabilities | 0 | 0 |
Other long-term assets | ||
Assets | ||
Derivative assets | 0 | 1 |
Derivative liabilities | 0 | 0 |
Other current liabilities | ||
Assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 9 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Gains (Losses) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commodity derivative instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Commodity derivative instruments | $ (18) | $ 45 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Details) | Mar. 31, 2024 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregate fair value of derivative liabilities | $ 9,000,000 |
Fair value of collateral for derivative liabilities | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liabilities | ||
Derivate asset, subject to master netting arrangement, collateral, obligation to return security not offset | $ 4 | $ 13 |
Commodity derivative instruments | ||
Assets | ||
Derivative assets | 20 | 31 |
Contract netting | (10) | (6) |
Collateral netting | 0 | 0 |
Net value | 10 | 25 |
Liabilities | ||
Derivative liabilities | 19 | 6 |
Contract netting | (10) | (6) |
Collateral netting | 0 | 0 |
Net value | 9 | 0 |
Commodity derivative instruments | Level 1 | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Commodity derivative instruments | Level 2 | ||
Assets | ||
Derivative assets | 20 | 31 |
Liabilities | ||
Derivative liabilities | 19 | 6 |
Commodity derivative instruments | Level 3 | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
RFS | ||
Liabilities | ||
Derivative liabilities | 294 | 329 |
Contract netting | 0 | 0 |
Collateral netting | 0 | 0 |
Net value | 294 | 329 |
RFS | Level 1 | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
RFS | Level 2 | ||
Liabilities | ||
Derivative liabilities | 294 | 329 |
RFS | Level 3 | ||
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair value measurements | ||
Cash, cash equivalents, and reserved funds, carrying value | $ 644 | $ 1,200 |
Long-term debt | 1,500 | 2,100 |
Level 1 | ||
Fair value measurements | ||
Cash, cash equivalents, and reserved funds, fair value | 644 | 1,200 |
Level 2 | ||
Fair value measurements | ||
Long-term debt, fair value | 1,500 | $ 2,100 |
CVRP JV | ||
Fair value measurements | ||
CVR Partners estimated fair value of consideration | $ 46 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation | ||
Total share-based compensation expense | $ 10 | $ 9 |
CVR Partners - Phantom Unit Awards | CVR Partners | CVR Partners Long Term Incentive Plan | ||
Share-Based Compensation | ||
Total share-based compensation expense | 2 | 2 |
Incentive Unit Awards | ||
Share-Based Compensation | ||
Total share-based compensation expense | $ 8 | $ 7 |
Commitments and Contingencies -
Commitments and Contingencies - Crude Oil Supply Agreement (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Crude Oil Supply Agreement | Petroleum Segment | Contracted Volume | Supplier Concentration Risk | ||
Loss Contingencies [Line Items] | ||
Volume contracted under crude oil supply agreement as percentage of total crude oil purchases | 21% | 31% |
Gunvor Crude Oil Supply Agreement | ||
Loss Contingencies [Line Items] | ||
Renewal term of agreement | 1 year | |
Notice of renewal period termination | 180 days |
Commitment and Contingencies -
Commitment and Contingencies - 45Q Transaction (Details) - CVRP JV - Collaborative Arrangement, Transaction with Party to Collaborative Arrangement and Third Party - CRNF $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Loss Contingencies [Line Items] | |
Collaborative arrangement, fee threshold per year | $ 15 |
Fees threshold cap | $ 45 |
Commitments and Contingencies_2
Commitments and Contingencies - Renewable Fuel Standard (Details) - Petroleum Segment - Environmental, Health, and Safety Matters - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Expense (benefit) for compliance with RFS | $ (51) | $ (11) | |
RFS obligation | $ 294 | $ 329 |
Commitments and Contingencies_3
Commitments and Contingencies - Litigation (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2022 USD ($) | |
Call Option Lawsuits | |
Loss Contingencies [Line Items] | |
Indemnity insurance, coverage limit | $ 50 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segments - Schedule of
Business Segments - Schedule of Operating Results and Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 1,863 | $ 2,286 | |
Operating income (loss) | 123 | 330 | |
Interest income (expense) | (20) | (18) | |
Other income, net | 4 | 3 | |
Income before income tax expense | 107 | 315 | |
Depreciation and amortization | 76 | 68 | |
Capital expenditures | 51 | 59 | |
Total assets | 4,093 | $ 4,707 | |
Petroleum Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,718 | 1,987 | |
Nitrogen Fertilizer Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 128 | 226 | |
Operating Segments | Petroleum Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,722 | 1,993 | |
Operating income (loss) | 118 | 237 | |
Depreciation and amortization | 48 | 46 | |
Capital expenditures | 36 | 42 | |
Total assets | 2,986 | 2,978 | |
Operating Segments | Nitrogen Fertilizer Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 128 | 226 | |
Operating income (loss) | 20 | 109 | |
Depreciation and amortization | 19 | 15 | |
Capital expenditures | 5 | 4 | |
Total assets | 972 | 975 | |
Other / Elimination | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 13 | 67 | |
Capital expenditures | 10 | 13 | |
Total assets | 135 | $ 754 | |
Inter-segment fees and sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (4) | (6) | |
Inter-segment fees and sales | Petroleum Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (4) | (6) | |
Inter-segment fees and sales | Nitrogen Fertilizer Segment | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 0 | 0 | |
Other / Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 17 | 73 | |
Operating income (loss) | (15) | (16) | |
Depreciation and amortization | $ 9 | $ 7 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Flows Related to Income Taxes, Interest, Leases, Capital Expenditures, and Deferred Financing Costs Included in Accounts Payable, and Non-Cash Dividends (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental disclosures: | ||
Cash paid for income taxes, net of refunds | $ 26 | $ 4 |
Cash paid for interest | 36 | 29 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 4 | 4 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 2 | 1 |
Noncash investing and financing activities: | ||
Change in capital expenditures included in accounts payable | 4 | 4 |
Change in turnaround expenditures included in accounts payable | 27 | 32 |
ROU assets obtained in exchange for new or modified operating lease liabilities | $ 4 | $ 9 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 644 | $ 581 | ||
Reserved funds | 0 | 598 | ||
Restricted cash | 0 | 7 | ||
Cash, cash equivalents and restricted cash | $ 644 | $ 1,186 | $ 608 | $ 517 |
Related Party Transactions - Ex
Related Party Transactions - Expenses from Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Sales to related parties: | $ 1,863 | $ 2,286 |
Dividends | 50 | 50 |
Related Party | CVRP JV CO Contract | ||
Related Party Transaction [Line Items] | ||
Sales to related parties: | 1 | 1 |
Related Party | Enable Joint Venture Transportation Agreement | ||
Related Party Transaction [Line Items] | ||
Purchases from related parties: | 3 | 3 |
Related Party | Midway Joint Venture Agreement | ||
Related Party Transaction [Line Items] | ||
Purchases from related parties: | 7 | 6 |
Dividends | ||
Related Party Transaction [Line Items] | ||
Dividends | $ 33 | $ 36 |
Related Party Transactions - Di
Related Party Transactions - Dividends to CVR Energy Stockholders (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
May 20, 2024 | Apr. 29, 2024 | Mar. 11, 2024 | Nov. 20, 2023 | Aug. 21, 2023 | May 22, 2023 | Mar. 13, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||||||
Quarterly dividends per share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | ||
Quarterly dividends paid | $ 50 | $ 50 | $ 50 | $ 50 | $ 50 | $ 201 | ||
Special dividend declared (in dollars per share) | $ 1.50 | $ 1 | $ 2.50 | |||||
Special dividends paid | $ 151 | $ 101 | $ 251 | |||||
Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Dividends declared per share (in dollars per share) | $ 0.50 | |||||||
Dividends, cash | $ 50 | |||||||
Subsequent Event | IEP | Forecast | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from dividends received | $ 33 | |||||||
Public Stockholders | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quarterly dividends paid | 17 | 17 | 15 | 15 | 15 | 61 | ||
Special dividends paid | 51 | 29 | 80 | |||||
IEP | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quarterly dividends paid | $ 33 | 33 | 36 | $ 36 | $ 36 | 140 | ||
Special dividends paid | $ 100 | $ 71 | $ 171 |
Related Party Transactions - _2
Related Party Transactions - Distributions to CVR Partners' Unitholders (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
May 20, 2024 | Apr. 29, 2024 | Mar. 11, 2024 | Nov. 20, 2023 | Aug. 21, 2023 | May 22, 2023 | Mar. 13, 2023 | Dec. 31, 2023 | |
CVR Partners | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quarterly distributions per common unit (in dollars per share) | $ 1.68 | $ 1.55 | $ 4.14 | $ 10.43 | $ 10.50 | $ 26.62 | ||
Quarterly distributions paid | $ 18 | $ 16 | $ 44 | $ 110 | $ 111 | $ 281 | ||
CVR Partners | Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distributions declared (in dollars per share) | $ 1.92 | |||||||
Distributions declared | $ 20 | |||||||
CVR Partners | CVR Energy | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quarterly distributions paid | 7 | 6 | 16 | 41 | 41 | 104 | ||
CVR Partners | Public Unitholders | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quarterly distributions paid | $ 11 | $ 10 | $ 28 | $ 70 | $ 70 | $ 178 | ||
CVR Energy | Subsequent Event | Forecast | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from distribution | $ 7 |