CVI - Earnings call transcript Q1 2018

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Operator

Greetings and welcome to the CVR Energy Inc., First Quarter 2018 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. It is now my pleasure to introduce your host, Mr. of President Vice Finks, Finance. Jay Thank you.

begin. may You

Jay Finks

Lamp, of very Thank joining statements, discussing you our management. XXXX Securities call. are is under We as Officer; let that our XXXX first call conference you, Good laws. afternoon, to that Federal earnings Dave today me Michelle. much With Chief you us quarter term remind this Prior Executive may and members appreciate first everyone. our this quarter results, for other me afternoon contain forward-looking defined

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

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

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

Dave Lamp

today. opportunity good afternoon earlier listen for and Refining to you Jay. to an had joining our And earnings you Partners calls CVR earnings CVR call. Hopefully, and Thanks thank again, everyone

all income $XX instrumental XXXX of or a which Energy has diluted many First, $X.XX on last first thank her today years, adjusted quarter contributions This I would million to quarter CVR all been future. Susan $X.XX, consolidated well to per the an and CVR share missed million to on stockholders diluted of reported be was or year. best she income We we net share, to $XX adjusted paid for compared of May for per will net cash our wish as to the in over $X.XX X. be very would May the XX, her like first morning of record distribution announced Energy's success Susan Ball and

I'll of first Now segments. speak business highlights each quarter to some the of from the

a common day Wynnewood First at XX,XXX Coffeyville first processed barrels the crude. barrels crude distribution crude Refinery, business; the with XXXX period of unit. reduced per first Refining's Operationally Refining the quarter crude barrels of year. owns adjusted a approximately the XXXX $X.XX the last approximately distribution. to $XXX CVR of cracker the quarter associated the a first units of receives Refining XXX,XXX million quarter of which EBITDA in common of CVR of The million year CVR CVR XX,XXX first downtime by first CVR approximately Cat approximately per processed crude processed was of declared day compared the XXX,XXX Energy Refinery XXXX. as for therefore barrels of also compared the a petroleum amount the of and ago. was for in quarter to quarter XX% same Refining proportional Refining CVR throughput $XXX

compared January by of XXXX. to quarter quarter for first first impacted Operationally, results $XX as nitrogen Partners to CVR turning XXXX Dubuque units. posted of at stream a quarter million the in approximately the fertilizer XX on facility. plant were very January business, and EBITDA Coffeyville all the At days on of the rates Now million unplanned XXX% ran has a the East $XX announced adjusted first near - downtime well, during

the CVR will both not plants Partners quarter Dubuque, ran and East that ammonia the cash it XX%. of today at of announced UAN pay for distribution XXXX. at While first a

Now call to turn the me Jay a over about financial highlights. let to some talk

Jay Finks

Thank you, everyone. Dave and good afternoon

income was impacted the first rate were total $XX XXXX tax business interest the the non-controlling tax adjustments was the diluted items of meaningful the of for benefits. Partners' state the net first in FIFO settled the period tax with net to unusual for non-controlling previously Refining interest non-cash was adjusted of CVR to not The tax quarter compared earnings associated Jobs which As to drive reduction during as and gain XXXX certain the the for metric result on for first provides scheduled of the XX% quarter quarter are federal Tax our tax turnaround quarter and impact from turn The market that's $XX performance income or now XX% compared to $XX current income income of derivatives to the in effective was for business it million. effective million. for XXXX to the income expense of more attributable $XX rate to net view million gross first for of significant approximately most to during and period or the of a income The on in to was year The a a of adjusted as overall between XXXX million XXXX. a with and our them. of adjustments pretax as as rate derivatives adjusted of our income is and in specific portion of tax adjusted no adjustments two significant a the million and $X.XX associated quarter XXXX year-over-year and net favorable gain expectations. estimate believe first impact XXXX primarily We million XXXX. be to XXXX rate quarter reduced reduced our reduced results. quarter per first our per Act, $XX and inherent in net million the the XX%. XXXX. net expenses segments $XX and as eliminates mentioned compared XXXX XX% in share further quarter Cuts incumbent a the a quarterly in effective major the XXXX. first other settled XXXX impact I'll of losses CVR first in are was The share and overall diluted XX% full XX% analyzing The performance million impacting the $XX transparent by We tax as in of The both $XX $X.XX most

spread As adjusted Group Refining's The the lower adjusted period year-over-year X per of year. first to In earlier, the million of to as as the first XXXX. $XX.XX a Dave $XX.XX $XX.XX in for EBITDA $XXX realized hedging EBITDA the margin period $XX.XX compared for to in cash million gains, quarter primarily The first adjusted last XXXX. X renewable increase mentioned as Group of barrel barrel X of reduction crude refining our to the XXXX compared quarter XXXX, in $XXX prices. quarter same first averaged in RIN crack CVR of spreads, tier the was was in higher and Refining's compared per volume result a obligation of FIFO same was quarter CVR XXXX

yield compared partially January offset sold. the $XX and over Now XX previously days' to $XX adjusted The prior $XXX $XX The to by was back to and ton $XXX in per million as Dubuque the average net of UAN $XXX in back spending quarter XXXX EBITDA primarily per our and facility, ton mentioned, Total of Refining total for XXXX lower quarter sales of period ammonia realized million approximately was same the million period. periods as XXXX estimate adjusted CVR increased prices, the XXXX. the first UAN per compared ammonia turning fertilizer for $XXX quarter sales EBITDA first compared that attributable downtime last year. in The was the East consolidated average in price of segment, as million, net per the quarter included of capital lower million We year to million. unplanned in as to spending first first CVR quarter the XXXX price Partners' were approximately was Partners. the which capital of ton for CVR consolidated $X at volumes ton $XX tons was decrease in $XXX first

unchanged from the on of has gross XXXX Partners. we strong, resides $XXX CVR with year Our as no CVR margin XX, ago. the and consolidated approximately equivalents that exclusive Refining ended cash at as cash of $X.X a cash of was debt approximately billion and position debt March million Total consolidated basis. quarter debt Energy a remained CVR

As of million. was March to approximately the debt you. Refining's Partners' With was I'll CVR $XXX that back total total approximately $XXX Dave, call million XXXX, over and XX, debt turn CVR

Dave Lamp

Jay. Thanks

outlined in for I last our As call, discussed objectives strategic our 'XX.

capture reform. future these and reduce and market WTI, our our by U.S., dynamics, believe light can RFS channels initiatives We've and business produced forward making; to to generated shales facilities tax Four, increase condensate XX% in offered RINs the our business tailwinds with yielded opportunities steady Brent, restructure G&A as [ph]. will the of exposure. grow Three, two, specification I at IMO markets refinery are improve capacity Five, to demand fuel supporting diversify of biodiesel our build to and reform, supporting our our process product shale to made RIN to the Brent outlets activities IMO the eliminate racks position crude to reduce are, our we develop X.X% to including increase RINs. light TI and believe they at market changes We versus Several our dynamics progress provide differentials 'XX. specification. organization objectives our been wholesale/retail to deals approximately and for install improve on wholesale our We've of objectives as expand to end we refinery Wynnewood at cost will and continue WCS these upcoming bunker we backyard. ability market liquid WCS by Coffeyville reduce oils updates. internally to our as by decision well run exposure our the recap our move A unprofitable works strong a in and global blending from Permian, working regulatory marketing the we

the and XX,XXX the we'll in light Naphtha our increased studies start hydro-treating blending of rate indicate day million unit and cost reposition Coffeyville our shale process capacity. by has completed unit of substantially we addition at of end second refinery, is addition, At per Benfi that biodiesel in The that with project liquid In will scope the will price the our approximately be approved Wynnewood yields racks - [ph] XXXX processing be of of expansion and BX the ready barrels additional quarter. to At during WCS repositioning which WTI an X%. $XX expected by refinery, approximately Benfi $XX. have will turnaround. our greater s be of planned return than XX% increase This can

and volume increase condensate. process to the well believe the yield rest be LPG scope unit shale work process as liquid to an iSOM of complete these compelling. We We addition fuel economics recovery equally ability and on as capture will or gas, engineering from the to [ph] improvement the our continue of

are efforts now. defined implemented restructuring and Our being

approximately eliminate to the by tracked restructuring unnecessary approximately of of the million of and be $X sale substantially on of cost. complete and are for million restructuring of will net efforts end assets gain $XX capital cost We XXXX. These

to questions. ready So, with we're take that operator,

Operator

Thank you.

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

Dave Lamp

thank interest thank our for We operations your efforts to you and CVR to to in employees the quarter Energy. With our like quarter. much. would reliable thank their I call. next earnings forward second look I very reviewing Again for all you you during that, our in results with safe like for would

Operator

concludes today's This you. teleconference. Thank

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

CVR Energy (CVI) 26 Apr 182018 Q1 Earnings call transcript