CVI - Earnings call transcript Q3 2017

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Operator

Greetings and welcome to the CVR Energy Inc.

Third Quarter 2017 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Mr. now is to host, introduce It of Jay President Finks, Vice Finance. may you, begin. Thank you

Jay Finks

Michelle, that good our you, today and joining quarter Thank and earnings are us appreciate very XXXX Chief this you Jack under our Ball, much Lipinski, results, Prior may afternoon Executive With for me Securities you remind Officer. forward-looking let conference contain call. our call CVR our third defined discussing Susan afternoon, to Energy me Financial term statements Laws. as that Federal Chief everyone. quarter XXXX Officer; is We this third

For believes, facts any made may anticipates, similar expressions plans, that foregoing, to statements, call historical to this deemed the purpose forward-looking expects forward-looking be and during not this intended statements. be without are of outlook, statements identify words statements limiting are the

earnings be You by in with Securities are and affected Exchange our important factors latest statements that and filings these forth in the release. cautioned Commission may set our

Chief the turn are our Jack with such that said, non-GAAP filed With our result, in by included over XXXX actual opening the forward-looking Executive statements. disclosures As future otherwise, measures this the directly also most the Officer. that of differ update to new no call to third obligation to result as the undertake various financial we the to any measures. related call required of except earnings in operations market. publicly from financial GAAP measures, including or the a may a extent morning The reconciliation information, statements, discussed We I'll law. Jack? Lipinski, whether results or This events results comparable the quarter forward-looking release prior includes to SEC to materially non-GAAP

Jack Lipinski

earnings net you net in quarter reported This income and $XX.X CVR the third call. quarter million, last a income calls Thanks to share share million, afternoon, this the third XXXX as our Energy's Refining $X.XX provide to Adjusted net $X.X listen net for of ago. third the compared a you consolidated the CVR $XX.X and per details will quarter $XX CVR today. million morning, everyone, on and had year. or of per year we reported income diluted Partners few minutes, million, the to diluted opportunity that income compares to or Hopefully, Jay. an financials, we $X.XX earnings joining for adjusted morning. was Good Susan thanks earlier more of of In

declared crude of day This Wynnewood Refining and CVR the The for remain pipeline Cushing. formation announced By will Plains of pipeline to Broome which the a the system was morning connects XXX-mile,XX-inch stockholders will dividend of Refining's our XX-XX of amount pipeline joint CVR Broome The XX% of throughput into paid pipeline common XXXX American also at We XXX,XXX quarter a operators also therefore of adjusted and on Coffeyville be announced barrels of EBITDA some Cushing million, was which day. November a and proportional CVR a Cushing LLC, to over third point. combined to this XXX,XXX XX. $XX.X segments year business approximately day. processed share, Refinery quarter Plains $X.XX speak $X.XX XXth Refining compared million a the a on a XX,XXX unit. to the Plains. quarterly Coffeyville November highlights cash per common Energy the Operationally units just pipeline. distribution. barrels today I'll receives processed third to of CVR Refining quarter to CVR per the All of venture, barrels acquired distribution record a Midway ago. the $XXX.X from owns the contract, approximately of

approximate an announced, the fourth XX-inch X- oil in is Refining CVR close and acquire pipeline to system quarter. XXX-mile, agreed to acquisition Plain. Cushing company expected from Additionally that This Ellis the crude to has

will With secure these source Refining two long-term CVR to price-advantaged the purchase which a refineries and transactions, mid-continent potentially their crudes. leads will further drive

side, operated EBITDA distribution our days XX%. that I'll cash quarter of adjusted by and units Partners Susan turnaround facility. to XX% Fertilizer the financial CVR The third million XXXX. $XX.X at ammonia plant both were about East a XX%, downtime announced results will call third third in Dubuque a to the ran and unplanned at talk and the highlights. of year compares Dubuque unit East turn quarter On not quarter ran quarter today, unit ran and third ago. million At they Operationally the the scheduled while $X eight impacted UAN the fire Partners for XX%. announced Coffeyville's the ammonia point over UAN at pay gas CVR this of to

Susan Ball

afternoon, good and Jack, everyone. you, Thank

that's share These were business adjustments previously result the expectations. income for gross eliminates or derivatives other under net not non-controlling more recovery net Jack to million. net tax unusual quarter adjusted scheduled net it expenses are FIFO the of $X.XX provides during the reduced $XX.X during portion The $X.X adjustments with $X.XX $XX.X per million, settled income adjusted favorable XXXX more to $X.X method the attributable drive recovery non-cash of inherent of as with and further items and Dubuque million $X.X believe meaningful million, a share quarter the of million, income on diluted of in XXXX a income of business net accounting transparent in is impact accounting The quarter turnaround to mentioned, As was inventory merger view first impact the expenses loss quarter as or to major to the and insurance for third $XX.X period income compared million significant and adjusted a associated insurance current XXXX. We performance settled net interest in the diluted as unfavorable our adjusted $X.X for income the interruption per business metric our for to million, third third $XX market are derivatives not $X.X of adjustments net associated our of the million of or for reduced on million. of interruption of out for $XX the impact of FIFO first East in XXXX third impact the and loss a them. period million, the as an analyzing

was third third XXXX as rate approximately to compared XXXX. the XX% effective quarter quarter The XX% in of tax

in CVR to the Partners' now our tax tax overall ownership impacting credits. to business our will I to benefits income state of earnings Refining's varies Our from results. expected income the of two rate associated effective CVR related statutory and to reduction specific quarterly and performance primarily the subject non-controlling due segments interest rate XXXX the turn tax with

the as by quarter for third realized was X crack Turning adjusted FIFO compared as barrel barrel quarter was a XXXX. cost increase II and of spread period X-X-X in primarily Spreads by $XX.XX in million quarter third increase crude CVR $XX.XX to of Crack the refining the of slightly petroleum XXXX was $XX.XX third X-X-X CVR earlier, as $XXX.X $XX.XX the compared per EBITDA In XXXX, the the the in per to million in averaged barrel offset of as X quarter segment, partially in third in for the an in the Refining's The same Group NYMEX XXXX. crack $XX.XX reduced as per in period discount. Refining's $XX.XX averaged of to of quarter Jack quarter driven Group the same to The to $XX.X XXXX barrel compared spread third mentioned XXXX. same increase the PADD XXXX. significant compared per in overall XXXX adjusted X-X-X margin net The rents

and a Wynnewood's bifurcated had as lasted of $XX Just cost approximately The to approximately later of XX turnaround, million. scheduled an begin estimated September. turnaround reminder, in half days

During footprint. the day the expand gathering quarter, businesses day petroleum opportunities compared crude third period as of be in to year. per petroleum There per same the barrels business last of gathered approximately XX,XXX XX,XXX the to to barrels continues crude

represent barrels the fourth Third day quarter upon of an projections based business the increase petroleum quarter over second per most recent quarter. is for XX,XXX over X% results the XXXX targeting

Turning segment. to fertilizer our

CVR third offset period compared XXXX. compared the to attributable at of was the the mentioned, East the ton compared adjusted last days to price ton to gate increased quarter million gate was third day quarter ton third UAN ammonia turnaround XX period per by at ton EBITDA plant the EBITDA downtime. product unplanned million the and $XXX adjusted third partially Dubuque $XXX as to Ammonia ton the in $XXX the $X product in prior UAN Jack as quarter per price well at average the in planned year over in XXXX of per quarter average as facility, Ammonia, for same quarter. of the in primarily plant $XX.X Partners' XXXX was X quarter year. realized As per $XXX as sales was of The decrease in prices the Lower third sold. as

remains and ended consolidated on debt basis. approximately at and $XXX as was XX CVR billion has billion, that CVR Energy of CVR of the consolidated no the as the cash debt of Our $X.X a XXXX. as at quarter million equivalents cash we $X.X approximately of gross Total Partners. compared strong end position Refining year to debt the exclusive September of resides cash with

As totaled CVR to turn debt of gross approximated debt September $XXX back I the approximated that, Partners will million. call XX, $XXX over CVR Refining's million. you. Jack, gross With

Jack Lipinski

Well, thank Susan. you

announced business XX, it's to CEO this family home, made and CVR this relax smell In XX.X XX announces my the of years as morning, roses. year, after my addition I the December in years other on to just retirement hang-up the Companies, effective go and cleats of

and replacing is and may President to Dave, over Operating the the prior Dave So, that forward him. CEO rains turning Officer, the will at most Northern be obviously Dave look and very to Tier. to know Chief recently me President Lamp. was I you qualified, at

place done the over and operationally years. dedication very staff, all work team good Companies XX job my shape all really good the and a in over the CVR to We their family financially. hard as thank last and I a have years, to for employees want the thank

turn you. Our mine, And not over success operator, it will to there's. is I with it's that

Operator

Thank you.

question-and-answer closing at turn a questions conducting to remarks. now back over instructions]. time, There to management no be are the this like call [Operator session. I will would We for

Jay Finks

call, Thank thank cvrenergy.com. additional the via Relations questions our any or for reach to Thank I contact website again you have today you. free to to everyone out Investor Michelle. you joining like should feel

Operator

teleconference. This concludes today's

for time. You and your at day. your participation, may wonderful this disconnect a Thank lines you have

CVR Energy (CVI) 1 Nov 172017 Q3 Earnings call transcript