CVI - Earnings call transcript Q1 2019

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Operator

Greetings and welcome to the CVR Energy Inc's First Quarter 2019 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 Treasurer. President Vice Finks, Finance and Jay Thank you.

may begin. You

Jay Finks

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

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

result, by actual forward-looking statements. As future otherwise the also are over includes with the measures differ turn update to I'll filed to new no obligations including result included two The as the With we in reconciliations quarter call various non-GAAP XXXX undertake any call required release of comparable except disclosure SEC. measures that in operations financial financial our Dave. to such that publicly of from or directly a may a the extent information, statements non-GAAP discussed measures. is related GAAP the earnings We law. the whether results most or This events said, first results forward-looking to materially

Dave Lamp

operations you 'XX on of improved hedging call. earlier consolidated first driven $XXX wide TI today. compared compared pricing. everyone, to 'XX. of good gains, crude was you quarter net quarter and previous and $XX Brent to the million, EBITDA first for and reliable income Yesterday, CVR Hopefully, quarter joining the Jay, call oil for our million us the thank reported of to in we first rising earnings for to safe differentials, listen fertilizer $XXX you, the differentials, $XXX million opportunity year, the crude the Partners million, lagging afternoon earnings by had as prices, Thank

yesterday's announced per also quarter per yield an the share, on May will stockholders of dividend $X.XX record March first paid share based which XX industry-leading We an on annualized of price. dividend represents dividend current on of approximately closing basis, of $X On yield Xth. our be to X%

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

segment, we For time barrels the XXXX. first the the compared per the barrels as completed ran Combined on in and quarter was first quarter and both budget. Wynnewood approximately planned total Petroleum throughput under plants XXX,XXX day, per turnaround to XXXX at day XXX,XXX for well, of safely of

the the quarter Wynnewood reminder, quarter the a consistent associated period. yield liquid prior with impacted affected at 'XX of turnaround was downtime the quarter. first for XX% while the cat Total was As current cracker year Coffeeville, by with

total also of was the of XX% the quarter first percentage consistent crude a as oil XXXX, period. yield year distillate Our prior throughputs with in

per day Our as compared the In last same XXXX approximately XXX,XXX period of distillate day oil among year. refiners. total, ranks quarter the quartile of in first we barrels independent top for the yield U.S. XXX,XXX consistently gathered during per to the barrels crude

to approximately shift XX% oils SCOOP slate relative gathering our As other to the increased by we of gathered backyard, our activities to XXXX, while in in quarter our first have we decreasing continue own gathering our crude regions.

lowered We Partners' the due general XXXX. Board for both May strong East for levels facilities. operations Dubuque XX% XX% fall unit of compared At the plant the quarter, adjusted unitholders weather. common of Directors utilization poor rate prior operated with year quarter, the utilization, CVR declared $X.XX capacity at of at on first we've East XX the the quarter turnarounds. reliable XX% The first to paid distribution during to partner had during May Dubuque, a utilization consistent business, in ammonia first at of plant the quarter first at operated record the per first fertilizer manage the unit, to storage which ammonia to of quarter turning for ammonia of Coffeyville's Now, Partners X. CVR at XXXX the

million. distribution of As CVR units common XX% we a approximately of $X Energy owns Partners, of cash the approximately receive proportionate CVR will

turn discuss me our financial the to highlights. Now, to call some of Tracy over let

Tracy Jackson

Thank you, Dave, and everyone. good afternoon

for The compared non-controlling decrease interest, due with into get the rate as quarter We of first our quarter better of the tax peers. I'd will presentation $XXX this presentation million first the the to a for was our of to accounting aligns for to presentation. The revised for we of conformed to a our effective XXXX prior the $X financial income period. to during operations I period. XXXX year EBITDA. this outline be tax XXXX was the reported as rate all result first in first better prior XX.X% align Diluted equity adjusted increase compared prior the and result consolidated and in in the $X.XX Prior we believes XXXX, now quarter no like We that will year income transaction. using $XX aligns evaluate primarily period. been as Management longer quarter to year EBITDA. planned of capitalizing in amounts industry segment, million how result, with results turnarounds compared EPS in costs we first XX.X% net Before new of for our of Petroleum quarter was have year turnaround the and our to be internally our

bringing price quarterly was the our segment's Petroleum was between our $XXX by the gains, EBITDA specific driven In the with continue of quarter to in XXXX. the differential With Crude differentials. the the third segments approximately million oil lagging overall spread to I same to to XXXX operations related million The nearly in that compared quarter higher per or the WCS to quarter tax WTI $X.XX turn two the and benefited This Brent-WTI we of government. XXXX have The barrel period than during barrel XXXX. the WCS our was differentials on was the XXXX. EBITDA inventory our and results. segment's of an hedging of inventory $XX.XX XX% We largely valuation in excluding XX%. WTI during of our parties barrel crude pipelines $XX.XX capture per over reduction curtailments for those the barrel in The in a remained were XXXX a first positive crude XXXX quarter to WCS be reliable The margin compared the XX% valuation as crude the The $XX.XX multiple to compares XXXX Group total differential XXXX year. first $X the performance we XXXX. now remaining for quarter production full-year excluding to capacity quarter expect valuation as the the business to first and through by will inventory first barrel tightened rising effective our compared in quarter rate quarter our by a margin impacting XXXX. first per crack barrel quarter on XX% Brent the WTI safe during in quarter to prices, compared in capitalize would differentials to average quarter with first year-over-year quarter average oil The of per period crude this $XXX XXXX. oil impact differentials impacts XX% wide per rate per and first by quarter the will first wider running petroleum to same increase per impact refining in rate first imposed in renewable $XX.XX of dollar of quarter $X.XX to XXXX into generated $XX.XX differential barrels the XXXX selling throughput between impacts averaged barrel Canadian a of was in earned result compares Capture positive increasing Cushing, the quarter volume through flat favorable XX the than Alberta barrel able the obligation. first same during system. the $XX.XX of in per last

purchases XXXX, open currently Although $XX pipeline delivery of for total derivative Gains unrealized at quarter the have prior at first differentials first per were RINs volumes expect of was to to expense Canada benefit constrained currently out of was of of RINs rates, total our with XXXX recently, of we of throughput in expense million the million, $XX second of the Based by total the year potential XXXX crude again widen higher begin In approximately associated year. the downtime in primarily the $X.XX $X.XX million of XXXX to XXXX losses XXXX. the unrealized first and the which includes scheduled $XX was of we any direct in prior quarter gains quarter The and recent differentials $X.XX as of out for fourth expenses $XX per total throughput $XX estimates Coffeyville. the $X the the million see Petroleum barrel lower period as positions obligations. of of total barrel of current be period. was personnel period. $XX million market per decrease will oil XXXX we are renewable on $X.XX that to had expenses end of operating year of throughput $XX reductions million first WCS or XXXX. Canadian quarter same compared with second-half to prices compared or in in in million quarter remains volume the million last The totaled which capacity tightened RINs barrel and of quarter upon barrel impacted in segment's excluding per production as throughput and estimate associated that

for EBITDA due to segment, of of is of and ammonia quarter Partners improved of per common of the of first loss the a or Fertilizer respectively. and $X.XX per $X.XX loss of XXX% the income unit, EBITDA pricing was million XXXX. million. XX% compared and This or and CVR unit, full operating for net net EBITDA quarter million, million of $XX our $X losses of million $XX Now, in UAN to reported increase $X operating common $X XX% year-over-year XXXX, turning The and for to approximate $XX primarily million

environmental approximately consolidated $XX million and included at maintenance million quarter We first $XX and comprised turnaround petroleum turnaround petroleum Partners. excludes capital spending total, currently XXXX includes from million in be consolidated the which $XXX approximate million including estimate which sheet, CVR is $XX and for of $X for Partners. to capital year, $XX consolidating of the planned $XXX million segment million estimate to which spending from balance million for million, million will $X capital was the $XXX spending. Of spending we million. environmental million total This the Turning be the to $XXX This the $XX funding capital. total CVR XXXX maintenance this planned segment and to approximately

we on million cash basis, a ended includes of position quarter $XXX Partners. the as cash million $XX CVR which strong Our approximately with remains at consolidated

of feel the reminder, January and position. We approximately quarter resulted transaction in in completed in during equity the balance a that the million. $XXX use our we strong sheet liquidity confident of cash As

estimate throughput be total second approximately for barrels to XXXX of quarter day. to per our the ahead, XXX,XXX Looking we XXX,XXX

to capital expenses quarter $XX the Dave, We operating call second between to $XX With that, turn expect the range will million and back total $XX spending for you. million be million to and million. direct total I to approximately $XX

Dave Lamp

results proud strong are Thank XXXX. quarter of the first for Tracy. we summary, you, In of our

Our be growth. by tier as top mission petroleum performance company profitable continues and North refinery safe financial to measured and a reliable fertilizer American superior operations,

host XXXX themes outlook. and of that drive see our a beyond, we Looking at currently market constructive

crude the is capacity profitable includes fourth gasoline explore refining is Wynnewood regulations on growth business; have domestic ever recap supply unemployment. those a driven number exposure, prudently healthy local new and in demand and objectives, product oil increase United First, The reliable delayed. IMO on our of is as crude both and XXXX driven track by gasoline of and building the operations; domestic low under out and we In is growing is decline initiatives global on being oil XXXX increasing remains building TI differential a earnings In yield diesel. positive for view healthy, steady of strong RIN internally execute biodiesel worldwide States, oil demand for by call. A by currently our will gross January increase refineries, Energy production and evaluation implementation and production continue shale for increase by the and our safety purchasing we objectives design number pipeline and and gathering Brent as as corn outlook yield continuing these growth and is in strategic this turnarounds discussed in improvement operations and a result safety for our and systems XX% backyard our our and our crudes progressing budget; well-positioned our unit system rate. inventories in of well CVR is gasoline retail RINs -- costs. initiatives farmer's outlined a to manage we I structure reduce safe and one improves their the are yields. and priority XXXX objectives increased Nitrogen fertilizer operations; that and our businesses. of and time are of frame represents A refinery improving call, XXXX. are matters, wholesale last recap which previously liquid at of believe our our our cost On logistic on improve beyond. or fertilizer significantly or quarter as generated and of to completing isomerization liquid our the environmental those continued We blending support all of at to capture premium in health new our new about

returns barrels approved, the to process underutilized We listed surge system started capacity have projects by XX% our as fertilizer our of it and is these production premium of schedule oxygen replace us gasoline expected a WCS acid projects increase higher. refinery. at as tank all Oklahoma and solid to catalyst I with at an operation an Coffeeville expected If phase to through our or underutilized catalyst. This design XX,XXX an day also that our is install processing Increase plant. and hydrofluoric gasoline the is our Wynnewood to Complete project board Wynnewood. for of farm natural at per above Cushing, it will have sale Coffeeville asset asset also

million our by our million budget profit a reminder, As we $XX additional in have that improvement of $XX require approximately to capital approvals projects board.

initiatives and I We I'll continue updates. move to develop forward these as provide

and to take in $XX.XX has quarter. prices [indiscernible] drivers averaging to quarter operator, has last Brent $X.XXX down at second the Brent $X.XX X to $X of look X These Group $X.XX TI we're the first averaged per continued with quarter and to With Group down quarter the ready the on per from strong spread. ethanol there quarter from $X.XX the cracks decline market questions. approximately have the that date, quarter per cracks biodiesel averaging date we on $XX.XX As XXXX and approximately Brent averaged remained barrel were yesterday TI to-date. barrel and spread $XX

Operator

you. Thank

be session. first Please comes [Operator with question. Our question-and-answer question conducting Citigroup. line a Rao the from of We will Prashant with proceed Instructions] now your

Prashant Rao

And total stand kind the the in of total is the barrels to the magnitude what -- quarter? quarter, question. to Canadian for in of Midland, good access how you on or the inventory Tracy strategic of ran secondly, -- right how a repeat side. the profit sort numbers the of the remind about selling then done your to pretty I was much how missed I XX-day then just a I and starting that $XX there, couple might and that was can barrels? this, on this to sorry about questions those margin start but able was the your and had be related are color of much market left up, us crude of Thanks recalled tightened the those that sort your Hi, have get so versus afternoon. a [ph] then out, trying taking and be or I'm million that, sense wanted in even heavy, is now, on with the but I'm you -- given Canadian to into wanted maybe Heavy, again. also get of some maybe much if I differentials think I'll and on it, what's lag, what you that just number terms

Dave Lamp

Okay.

XX,XXX. that sell Cushing, XX,XXX, On which we our We around plants do averaged what slate. the order said, at probably our capacity, rates X% in WCS just that about typically your to been prorated rest in if it We lately. don't of for much forgot I higher rates profitable it's and typically in keep facility, at line some of price run in or crude to is any Coffeeville all have has more -- very the With the strong run of their because around space WCS got we questions.

Prashant Rao

think it tightened, I'm that now kind or make the is much does Sure. have -- into I helpful you on still to that that to it to about in now? that's is so what the you sell and was sort XQ. is get a that sense run comments understanding benefit? there given it of was into barrels more more how XX-day how a in could is average, wanted of XQ, differentials I terms so that of that are in guess, have be specular I prepared could XQ, you you that behind going tailwind -- mentioned sold lag there just profitable it, forward Absolutely, WCS,

Dave Lamp

price we dramatically. the compressed, as today, has sell also is No, that is to in Cushing price know down get it's still profitable gone it you the

trading trading WCS in we're is range. XX today -- the So, XXXX,

Prashant Rao

Yes.

Dave Lamp

we it bucks freight sell still it to $X couple a and get Cushing, market about with the Cushing a -- to can in profit that With of that…

Prashant Rao

Yes.

Dave Lamp

in And could plant. what the we that [indiscernible] do

Prashant Rao

Okay. usually, mentioned if is usually mean been you've the… this already That that makes me before, forgive lag the sense. XX-day And has part lag or it of that but I

Dave Lamp

Yes. Oh, yes.

Prashant Rao

Okay.

Dave Lamp

plus. The XX days

Prashant Rao

Okay.

Dave Lamp

no, come. the batches -- It on that can be just oh, how depends

Prashant Rao

barrels; Other lag. out your that question sourcing and gets those Okay. sweet are a on backyard you're more since like this think light own XX-day side Midland of back, your the you've on got I

advantage Midland system, You as got the probably of you've that know get tactical couple widened that's but just in some be we've selling out now through not volatility how there barrels mid-Cush moving SCOOP/STACK curious taking more it's in come of how some again. have you and opportunity those been have, Would differentials and seen here you WCS as as the differentials seeing back some this we big the over months? if last opportunity given you're of the -

Dave Lamp

Cushing course pipeline, of basis business space on refineries. amount and run on we option have we about modest or barrels do mixes. we option buying differential, give use on on us as historical barrels what XX,XXX that in way we basin our supply -- such Cushing best that them of system gathering Well, exposure the will the that an on the that depending it which the gathering as we most is of a we a use run the to does Midland generally but an gather to of We're resell space either those

what buy and get the at need in we and Coffeeville very either our we but barrels want deliver and able picky deliver or our Cushing buy is to buy gathering strategy system be also exclusively, overall to to to - into backyard Wynnewood. to to system wellhead Our our them overall about in be

Prashant Rao

that a in go forward ends and mean could that that a to There's condensate some pricing, the as questions get all of neat being in of maybe Midland hear been think market are going I up you as ages your investors I'm related given what between what grades. and that goes seeing curious we a for what dynamics sort West discount some doing that through. discovery see and of your there, that's maybe what kind but used market curious about of and month, gotten to for to last to about hear light. guess you you speaking the we've the this need marker from the feedstock develops. over view Has the barrel the what the of in to Texas the guys think Permian that water has price there some of Okay. to month-and-a-half that barrels, where - being how you said curious thoughts

Dave Lamp

system to it's up starting there. three-tier a shape Well, as out

got blended widened to a in what's off to numbers XX a And come three years. discount the starting and to can then that just XX class kind as $X.XX in gravity white various then see ways. And class is is WTI you the crudes, ultra-light that had But with at far are XX regular. of got to that that's is the large kind API light in to you're getting I'll market least XX, the call up You've of to -- and are you've lot but of as higher them because all remember also that end that's WTI have one what and happening plus. of as another good the traded an them which that's those that to a to out starting are last indicators light the I XX a the as between historically those not with XX

out have lights capitalize think some cannot. less strategy also others that to trying that of to and I than spread because these ultimately these And to So on others that little continue less our and crudes same spots a they different amount of able produced go. more are and of to more and sweet we're make diesel places are as we're that

don't to barrel. have the we heavy to barrel, have light the really have we have So don't

Prashant Rao

we're sense. Last IMO. over M&A turn question, it obviously pretty Make Okay. environment, now still

some we wanted say to context some consolidation, we seeing integrators also in don't, with would and I are to let's of there's opportunities there on it that Is Does will or there at change more versus how sort sort that the what's imagine downstream the a you knock we're consolidation and and create the yet, of getting check help upstream but there's [indiscernible], will environment that you that an that are involved model. and value need So obviously of means on integrated with for the M&A more seems they majors upstream for on capacity questions not of going about players. but expectation effect guys? all, shale with what quite Chevron key picture their the

Dave Lamp

we Well, I think system are manage not would are that we've commands and consolidator, to needs has that today we and risk see future. process think classic we of think if in and for will, what Brent-WTI started XXX% don't happens to on that stated that fit the a the before there an front a assets somebody the the excellent we these I I marketplace. to a know here that a but that and or in we'll lies we Nothing's that changed case attraction consolidatee, yet that probably have premium in we a be but get or not refining exposure

Prashant Rao

wanted on the those a the WCS you Tracy think again you very repeat but called Okay. could just over catch you And $XX just thing last just please? million and it, went I number out to

Tracy Jackson

open that purchases here crude quarter the Canadian have had included delivered on oil will quarter. that million the for first unrealized in million of and We $XX second the losses of positions gains in $X Sure.

Prashant Rao

that includes… Right. And

Tracy Jackson

well? numbers want Did as year prior the you

Prashant Rao

Yes.

Thanks. compare. Just to

Tracy Jackson

Sure.

year of XXXX the first had unrealized total gains $XX we was prior quarter at $XX million derivative which period. the million end of of The

Prashant Rao

I'll very Thank appreciate over. Perfect. you it much. all I thanks. color turn the and

Dave Lamp

Sure.

Operator

Thank you.

question. Goldman Mehta Please from Sachs. Neil comes line of with question your next Our the with proceed

Neil Mehta

incrementals good about XQ the and you clean you just EPS one out obviously here, Thanks. to for should XQ that Dave, Really one cents and up your your is get pretty we're results because build look with spread environment, Anything XQ, want so Thanks as kind keep we to for crack remarks would QX, say in on taking timers, think as early we would think quarter. something when the or to you of $X.XX the decrements at we to versus quarter well. in time. look set

Dave Lamp

Well, the others we I'd there I think is us make we lot from. first than not the quarter a that think turnaround by that interruptions in our Neil of were benefit - comment other I

the narrow quarter. the running come markets go, and think some and up is NYMEX demand up does and as I'm running from in quarter. was the into it optimistic will supply look Will first if second think it's back we're ever as about that. the of probably group, And the lots in it If everybody I you that mean between basis the gasoline I we've I up at been pick the into is from the some I more, will also strongly is basis already -- $XX that spread right the Where of mean and there's is repeat, making NYMEX bit, our just doesn't around a the almost will Gulf third them the and like now kind running basis driving pretty running you of so out with turn that benefited group comes $XX. But that usually season out. and

Neil Mehta

future? trading to about flat you foreseeable want the over dividend the talk that I as for of guys the the X% as type dividend long this view there's helpful. or at here, for dividend That's $X hold at Is yield, just well yields. of you as should growth sort potential again dividend time the we a trade

Dave Lamp

yield very the Well, I $X $X with comfortable dividend. think we're --

these a to is in good generate the improvement we increase some support think our in cash projects for a our of shareholders way think for it business profit enough I dividend. well is to it long that as grow time the as as I reward

we think So and I the depending do Board going that on with happens I think will the determine forward. what what how dividend approves

Neil Mehta

down for Brent-WTI, into me, that question of the to it's where about Centurion online basin sort slow diverted going crushing go crude come I some last all to and crude of think when The debate get Coast. and evolve Permian and Gulf pipes these

As a Permian is? the post you all Brent-WTI you outlook pipelines, transportation the do the think, normal in about think economics, new these basis onsite what of you think do on normalized for what

Dave Lamp

EMP comments, that I said so more of comments although my to they're that's don't drill, companies have lately. see here my tells $XX particularly lot I I accelerate, think I they oil experience crude that with the think to like discipline and in a my on. that me in probably continue going But preferred change in increasing that drillers shale that Well, the come to seemed grow oil get generally and ever capital will to shale production,

as the think in that increase million, I X what the manifests you million, barrels Neal think million it is a X.X far you million, X here of continue Gulf as to perhaps around is day, Coast X X.X really have the Brent capacity takeaway As TI, somewhere million. itself I

it. just have Coast crude, TI the of You are new light maybe And Gulf where Brent see will widen, splitters not or with them widen, to short growing. keep all is building close that me the how something, or the to saturated but it some it even refineries away, probably barrel world is clear have maintain me flow and frankly, that to better, to tells reaching TI further I without will the to Brent upside see stays that some pretty don't some farther which where into

Neil Mehta

Okay.

yourself why CVI you do consolidator Let said, me refiners a to sorry, consolidatee there? relative talked not I'm how fact the and consolidator that you other given at is you you as a trade premium logical in not a as one, about view a last speak

Dave Lamp

answer Well, I'd for know I that don't know I don't have a I just great -- that.

is structure that I on. there shareholder in interest think is some moving our such

this seven years is another for and I with living is it with our happy seven Although maybe one very own with for very know. primary happy don't it of business years. shareholders and

think I market seems it's to be. bit at exit little it a just place as a point like if you a wanted where to business, the the bad is not

I logic where that's So is think thinking. the

Neil Mehta

guys. Yes. Thanks Dave. Thanks,

Dave Lamp

welcome. You're

Operator

you. Thank

with & comes proceed Tudor, question the from Holt Blair line next Our your Pickering, of with Please Company. question. Matthew

Matthew Blair

Good morning, Dave.

Dave Lamp

Good morning.

Matthew Blair

your million WCS the the derivative hedges quarter the a in that were this to to off at was to of of under set XXXX. $XX back roll WCS, gain impression relating I end lot Circling first

these continuing event was guess volumes, curious any XXXX. strike like you a price can just of be of details to overall and the and hedges duration provide the extend I it's on did sort throughout going any I So you future

Dave Lamp

on lot no, $XX of barrels you did nature the think. We're at is end just a exposure you from. I think day but of in now, buy can… hedged we was XXXX that believe neighborhood, $XX.XX have and the off was Tracy, XX,XXX coming a that have somewhere -- do No. completely that's expired two-month That I at there where how lag, but this there's believe we by a so some of we

Tracy Jackson

that move just goods would the accounted lot selling agreement a little and don't the our and remind of have through I buying and run intermediation differently sell we for of we a refinery. those helps that it when the barrels that you bit barrel

the in and Canadian said and So first games oil I crude when of first last hedge they quarter carefully very games on year use words purchases games word quarter. were my this the I

Matthew Blair

Okay.

any just of That's curious you have fit I like given it it sort you offer And a that? I profit Could it you impact normally Wynnewood you the lost big you seems was a could from of helped most quarter. But had in Okay. opportunity might on the then month turnaround, if that said the might something quarter. have then in Dave, the think thought expand where profitable actually helpful.

Dave Lamp

lost the market view turnaround it a way -- quarter. back the we're when opportunities off is anticipate, as that it at because and and we glad the refining we we that a but industry barrels it it the was a where than cut they when fact even increase. it toilet. improved didn't started we for saying said lost that perfect to And were I The or the gas cracks I that the opportunity, I as I which it's $X took time a helped it the know sector our total for in happened. less wouldn't the turnaround progressed turnaround, million frankly calculate something that was gasoline planned probably don't contributed Well, we frankly were was time because we

our standpoint a good number. that's So low it's a pretty very from

Matthew Blair

you in I of more so final numbers question your capitalize to I accounting $XXX think with like probably to turnarounds we to spending And should number add CapEx guess system $XX million the CapEx the revised $XXX then $XXX Thank $XXX I Okay. guidance million turnaround you. the then that just looks into that don't for new now know Tracy, and million I last million from million guess?

Tracy Jackson

I capital no you your revisions for the were note include in believe corporate our year. estimates to didn't amount. the there So,

fertilizer adding just together. and petroleum were You

of from So profile. capitalized being the Turnaround component not including first as end that not end capital changed. estimates to a capital have are we quarter year our spend

will talk about We that separately.

Dave Lamp

money approval final that Board there million to there we as too, yet, $XX have mentioned. on $XX we projects lot in was of million or a about for Remember don't

factor make that sure into So you your calculation.

Matthew Blair

to million going flow through $XX to I turnaround be But clear right? that's guess that flow cash Okay. just in the the spending statement,

Tracy Jackson

Yes.

Matthew Blair

very Okay, much. okay. you Thank

Operator

next Macquarie. you. with question Thank proceed question. Tobin comes Instructions] Jay Our [Operator from your of line with Please the

Jay Tobin

I of questions up in and up, there's sales looks volumes quarter, brought excess ramped It just around, great curious been I'll guys, think light Hi, just if of one. a lot a its driver throw that most my current with [indiscernible]? Coffeeville like moving processed have

Dave Lamp

Coffeeville guess to we really remember we opportunity you the in SCOOP run. move River they the Wynnewood, quantity the of that this have with of barrels were beginning so to at reversed pipeline at first Well, last where type started substantial turnaround the I quarter up and rate Red the this full it

So I think that's in you're what there. seeing

Jay Tobin

thanks. Got you. Great,

Dave Lamp

and that our you're more of going That plan is to by forward. the what see. going is More way

Jay Tobin

thanks. Excellent,

Dave Lamp

welcome. You're

Operator

Thank you.

call closing We back the session. would the have of to remarks. any management reached over Q&A turn to end I like for our

Dave Lamp

in to all like you Energy. we'd your Again, for thank CVR interest

next thank employees We operations. call. a forward Thank our reliable, results day. Additionally, reviewing look quarter have to good like commitment responsible I'd and towards second our to safe, earnings for work during hard their environmentally you our and

Operator

today's concludes teleconference. This you. Thank

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

CVR Energy (CVI) 25 Apr 192019 Q1 Earnings call transcript