CVR REFINING LP SUGAR LAND, Texas, July 27, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced a second quarter 2017 net loss of $19.2 million on net sales of $1,338.2 million, compared to net income of $78.1 million on net sales of $1,164.4 million for the second quarter of 2016. Adjusted EBITDA, a non-GAAP financial measure, for the 2017 second quarter was $43.1 million compared to adjusted EBITDA of $84.7 million for the 2016 second quarter.
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For the first six months of 2017, net income was $47.8 million on net sales of $2,761.7 million, compared to net income of $10.1 million on net sales of $1,998.4 million for the comparable period a year earlier. Adjusted EBITDA for the first six months of 2017 was $157.6 million, compared to adjusted EBITDA of $119.8 million for the first six months of 2016.
"CVR Refining operated well during the 2017 second quarter," said Jack Lipinski, chief executive officer. "The Coffeyville and Wynnewood refineries posted a combined crude throughput of 213,841 barrels per day (bpd), with Coffeyville achieving a quarterly crude throughput record of 133,819 bpd.
"Renewable Identification Numbers (RINs) remain the single largest headwind we face," Lipinski said. "The continued volatility and extraordinarily high prices of RINs further proves that we are dealing with a manipulated and contrived market. The EPA must fix this broken system or small, independent merchant refiners will remain in financial distress and at risk of closure."
Consolidated Operations
Second quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 221,954 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 210,488 bpd for the same period in 2016.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.48 in the 2017 second quarter, compared to $9.56 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 second quarter were $4.44, compared to $4.56 in the second quarter of 2016.
Distributions
CVR Refining will not pay a cash distribution for the 2017 second quarter. CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Second Quarter 2017 Earnings Conference Call
CVR Refining previously announced that it will host its second quarter 2017 Earnings Conference Call for analysts and investors on Thursday, July 27, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/21800. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/21800. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13666025.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. For a discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. These risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP
Financial and Operational Data (all information in this release is unaudited other than the balance sheet data as of December 31, 2016).
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except per unit data)
Statement of Operations Data:
Net sales $1,338.2 $1,164.4 $2,761.7 $1,998.4
Operating costs and expenses:
Cost of materials
and other 1,208.0 941.9 2,409.3 1,664.2
Direct operating
expenses(1)(2) 86.3 84.0 188.4 201.7
Depreciation and
amortization 31.7 30.9 65.0 61.8
---- ---- ---- ----
Cost of sales 1,326.0 1,056.8 2,662.7 1,927.7
Selling, general
and administrative
expenses(1) 18.9 16.8 38.9 35.3
Depreciation and
amortization 0.7 0.7 1.5 1.3
--- --- --- ---
Operating income
(loss) (7.4) 90.1 58.6 34.1
Interest expense
and other
financing costs (12.0) (10.1) (23.2) (20.9)
Interest income 0.2 - 0.2 -
Gain (loss) on
derivatives, net - (1.9) 12.2 (3.1)
Income (loss)
before income tax
expense (19.2) 78.1 47.8 10.1
Income tax expense - - - -
Net income (loss) $(19.2) $78.1 $47.8 $10.1
====== ===== ===== =====
Net income (loss)
per common unit -
basic and diluted $(0.13) $0.53 $0.32 $0.07
Adjusted EBITDA* $43.1 $84.7 $157.6 $119.8
Available cash for
distribution* $ - $ - $ - $ -
Weighted average, number of common
units outstanding:
Basic and diluted 147.6 147.6 147.6 147.6
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses and selling, general and administrative expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses.
(2) Direct operating expenses includes $2.8 million and $15.7 million of major scheduled turnaround expenses during the three and six months ended June 30, 2017, respectively. Direct operating expenses includes $2.1 million and $31.5 million of major scheduled turnaround expenses during the three and six months ended June 30, 2016, respectively.
As of June 30, 2017 As of December 31, 2016
------------------- -----------------------
(audited)
(in millions)
Balance Sheet Data:
Cash and cash equivalents $515.7 $314.1
Working capital 380.4 313.7
Total assets 2,447.1 2,331.9
Total debt, including current portion 541.1 541.5
Total partners' capital 1,344.5 1,296.7
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
(in millions)
Cash Flow Data:
Net cash flow provided by
(used in):
Operating activities $135.2 $37.8 $251.3 $40.8
Investing activities (27.8) (24.0) (48.8) (68.0)
Financing activities (0.5) (0.4) (0.9) (0.8)
---- ---- ---- ----
Net cash flow $106.9 $13.4 $201.6 $(28.0)
====== ===== ====== ======
Capital expenditures for
property, plant and
equipment:
Maintenance capital
expenditures $25.4 $14.3 $42.9 $39.6
Growth capital
expenditures 2.4 9.7 4.5 28.4
--- --- --- ----
Total capital expenditures $27.8 $24.0 $47.4 $68.0
===== ===== ===== =====
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Key Operating
Statistics:
Per crude oil
throughput barrel:
Gross profit $0.63 $5.84 $2.56 $2.01
Refining margin* 6.69 12.07 9.10 9.50
FIFO impact,
(favorable)
unfavorable 0.79 (2.51) 0.41 (1.06)
---- ----- ---- -----
Refining margin
adjusted for FIFO
impact* 7.48 9.56 9.51 8.44
Direct operating
expenses and major
scheduled
turnaround expenses 4.44 4.56 4.86 5.73
Direct operating
expenses excluding
major scheduled
turnaround expenses 4.29 4.45 4.46 4.84
Direct operating
expenses and major
scheduled
turnaround expenses
per barrel sold 4.12 4.33 4.54 5.34
Direct operating
expenses excluding
major scheduled
turnaround expenses
per barrel sold $3.98 $4.22 $4.16 $4.50
Barrels sold
(barrels per day) 230,345 213,368 229,439 207,669
* See "Use of Non-GAAP Financial Measures" below.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Refining
Throughput and
Production Data
(bpd):
Throughput:
Sweet 202,070 91.0% 176,674 83.9% 199,973 88.8% 173,700 85.5%
Medium - - % 3,429 1.6% - - % 2,471 1.2%
Heavy sour 11,771 5.3% 22,433 10.7% 14,130 6.3% 17,174 8.5%
------ --- ------ ---- ------ --- ------ ---
Total crude oil
throughput 213,841 96.3% 202,536 96.2% 214,103 95.1% 193,345 95.2%
All other
feedstocks and
blendstocks 8,113 3.7% 7,952 3.8% 11,161 4.9% 9,827 4.8%
----- --- ----- --- ------ --- ----- ---
Total throughput 221,954 100.0% 210,488 100.0% 225,264 100.0% 203,172 100.0%
======= ===== ======= ===== ======= ===== ======= =====
Production:
Gasoline 112,284 50.4% 108,330 51.3% 115,600 51.2% 107,105 52.7%
Distillate 96,578 43.4% 86,622 41.0% 93,260 41.3% 82,309 40.5%
Other (excluding
internally
produced fuel) 13,775 6.2% 16,280 7.7% 17,019 7.5% 13,900 6.8%
------ --- ------ --- ------ --- ------ ---
Total refining
production
(excluding
internally
produced fuel) 222,637 100.0% 211,232 100.0% 225,879 100.0% 203,314 100.0%
======= ===== ======= ===== ======= ===== ======= =====
Product price
(dollars per
gallon):
Gasoline $1.52 $1.44 $1.53 $1.24
Distillate 1.51 1.37 1.54 1.22
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Market Indicators
(dollars per
barrel):
West Texas
Intermediate (WTI)
NYMEX $48.15 $45.64 $49.95 $39.78
Crude Oil
Differentials:
WTI less WTS
(light/medium
sour) 1.06 0.83 1.24 0.49
WTI less WCS (heavy
sour) 10.00 12.92 11.88 13.26
NYMEX Crack
Spreads:
Gasoline 18.07 19.13 16.39 17.53
Heating Oil 15.11 12.82 15.32 12.37
NYMEX 2-1-1 Crack
Spread 16.59 15.98 15.85 14.95
PADD II Group 3
Basis:
Gasoline (3.95) (5.49) (2.96) (5.68)
Ultra Low Sulfur
Diesel (0.62) (1.18) (1.10) (1.10)
PADD II Group 3
Product Crack
Spread:
Gasoline 14.12 13.64 13.42 11.85
Ultra Low Sulfur
Diesel 14.49 11.63 14.23 11.27
PADD II Group 3
2-1-1 14.30 12.64 13.82 11.56
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except operating statistics)
Coffeyville Refinery
Financial Results:
Net sales $859.8 $778.0 $1,811.1 $1,306.0
Cost of materials
and other 773.5 630.7 1,581.9 1,093.4
Direct operating
expenses(1) 47.5 46.1 98.2 93.8
Major scheduled
turnaround expenses - 2.1 - 31.5
Depreciation and
amortization 17.4 16.7 36.4 33.5
---- ----
Gross profit 21.4 82.4 94.6 53.8
Add:
Direct operating
expenses(1) 47.5 46.1 98.2 93.8
Major scheduled
turnaround expenses - 2.1 - 31.5
Depreciation and
amortization 17.4 16.7 36.4 33.5
----
Refining margin* 86.3 147.3 229.2 212.6
FIFO impact,
(favorable)
unfavorable 10.1 (30.2) 11.6 (26.4)
---- ----- ---- -----
Refining margin
adjusted for FIFO
impact* $96.4 $117.1 $240.8 $186.2
===== ====== ====== ======
Coffeyville Refinery
Key Operating
Statistics:
Per crude oil
throughput barrel:
Gross profit $1.76 $7.11 $3.95 $2.53
Refining margin* 7.09 12.71 9.57 9.99
FIFO impact,
(favorable)
unfavorable 0.83 (2.62) 0.49 (1.24)
---- ----- ---- -----
Refining margin
adjusted for FIFO
impact* 7.92 10.09 10.06 8.75
Direct operating
expenses and major
scheduled
turnaround expenses 3.90 4.16 4.10 5.89
Direct operating
expenses excluding
major scheduled
turnaround expenses 3.90 3.98 4.10 4.41
Direct operating
expenses and major
scheduled
turnaround expenses
per barrel sold 3.61 3.84 3.74 5.28
Direct operating
expenses excluding
major scheduled
turnaround expenses
per barrel sold $3.61 $3.67 $3.74 $3.95
Barrels sold
(barrels per day) 144,479 138,021 145,014 130,429
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Coffeyville
Refinery
Throughput and
Production Data
(bpd):
Throughput:
Sweet 122,048 87.3% 101,548 76.2% 118,167 84.0% 97,242 78.1%
Medium - - % 3,429 2.6% - - % 2,471 2.0%
Heavy sour 11,771 8.4% 22,433 16.8% 14,130 10.0% 17,174 13.8%
------ --- ------ ---- ------ ---- ------ ----
Total crude oil
throughput 133,819 95.7% 127,410 95.6% 132,297 94.0% 116,887 93.9%
All other
feedstocks and
blendstocks 6,077 4.3% 5,844 4.4% 8,482 6.0% 7,594 6.1%
----- --- ----- --- ----- --- ----- ---
Total throughput 139,896 100.0% 133,254 100.0% 140,779 100.0% 124,481 100.0%
======= ===== ======= ===== ======= ===== ======= =====
Production:
Gasoline 70,032 49.3% 67,819 49.9% 72,271 50.5% 65,927 52.2%
Distillate 59,703 42.1% 57,549 42.4% 59,573 41.6% 52,348 41.4%
Other (excluding
internally
produced fuel) 12,146 8.6% 10,491 7.7% 11,246 7.9% 8,130 6.4%
------ --- ------ --- ------ --- ----- ---
Total refining
production
(excluding
internally
produced fuel) 141,881 100.0% 135,859 100.0% 143,090 100.0% 126,405 100.0%
======= ===== ======= ===== ======= ===== ======= =====
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except operating statistics)
Wynnewood Refinery
Financial Results:
Net sales $477.3 $385.3 $948.4 $690.1
Cost of materials and
other 434.6 311.3 827.7 570.7
Direct operating
expenses(1) 36.0 35.8 74.6 76.4
Major scheduled
turnaround expenses 2.8 - 15.7 -
Depreciation and
amortization 12.8 12.6 25.6 25.2
---- ---- ---- ----
Gross profit (loss) (8.9) 25.6 4.8 17.8
Add:
Direct operating
expenses(1) 36.0 35.8 74.6 76.4
Major scheduled
turnaround expenses 2.8 - 15.7 -
Depreciation and
amortization 12.8 12.6 25.6 25.2
---- ---- ---- ----
Refining margin* 42.7 74.0 120.7 119.4
FIFO impact,
(favorable)
unfavorable 5.2 (15.9) 4.1 (11.0)
--- ----- --- -----
Refining margin
adjusted for FIFO
impact* $47.9 $58.1 $124.8 $108.4
===== ===== ====== ======
Wynnewood Refinery
Key Operating
Statistics:
Per crude oil
throughput barrel:
Gross profit (loss) $(1.23) $3.74 $0.33 $1.27
Refining margin* 5.87 10.83 8.15 8.58
FIFO impact,
(favorable)
unfavorable 0.72 (2.32) 0.28 (0.79)
---- ----- ---- -----
Refining margin
adjusted for FIFO
impact* 6.59 8.51 8.43 7.79
Direct operating
expenses and major
scheduled turnaround
expenses 5.33 5.24 6.10 5.49
Direct operating
expenses excluding
major scheduled
turnaround expenses 4.95 5.24 5.04 5.49
Direct operating
expenses and major
scheduled turnaround
expenses per barrel
sold 4.97 5.22 5.91 5.44
Direct operating
expenses excluding
major scheduled
turnaround expenses
per barrel sold $4.61 $5.22 $4.88 $5.44
Barrels sold (barrels
per day) 85,866 75,347 84,425 77,239
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Wynnewood Refinery
Throughput and
Production Data
(bpd):
Throughput:
Sweet 80,022 97.5% 75,126 97.3% 81,806 96.8% 76,458 97.2%
Medium - - % - - % - - % - - %
Heavy sour - - % - - % - - % - - %
--- --- --- --- --- --- --- --- --- --- --- ---
Total crude oil
throughput 80,022 97.5% 75,126 97.3% 81,806 96.8% 76,458 97.2%
All other feedstocks
and blendstocks 2,036 2.5% 2,108 2.7% 2,679 3.2% 2,233 2.8%
----- --- ----- --- ----- ----- ---
Total throughput 82,058 100.0% 77,234 100.0% 84,485 100.0% 78,691 100.0%
====== ===== ====== ===== ====== ===== ====== =====
Production:
Gasoline 42,252 52.3% 40,511 53.7% 43,329 52.3% 41,178 53.5%
Distillate 36,875 45.7% 29,073 38.6% 33,687 40.7% 29,961 39.0%
Other (excluding
internally produced
fuel) 1,629 2.0% 5,789 7.7% 5,773 7.0% 5,770 7.5%
----- --- ----- --- ----- ----- ---
Total refining
production
(excluding
internally produced
fuel) 80,756 100.0% 75,373 100.0% 82,789 100.0% 76,909 100.0%
====== ===== ====== ===== ====== ===== ====== =====
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
The calculation of refining margin and refining margin adjusted for FIFO impact (each a non-GAAP financial measure), including a reconciliation to the most directly comparable GAAP financial measure for the three and six months ended June 30, 2017 and 2016 is as follows:
Consolidated Operating Data
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2017 2016 2017 2016
---- ---- ---- ----
(in millions)
Net sales $1,338.2 $1,164.4 $2,761.7 $1,998.4
Cost of
materials and
other 1,208.0 941.9 2,409.3 1,664.2
Direct operating
expenses below)
(exclusive of
depreciation
and
amortization
and major
scheduled
turnaround
expenses as
reflected 83.5 81.9 172.7 170.2
Major scheduled
turnaround
expenses 2.8 2.1 15.7 31.5
Depreciation and
amortization 31.7 30.9 65.0 61.8
---- ---- ---- ----
Gross profit 12.2 107.6 99.0 70.7
Add:
Direct operating
expenses below)
(exclusive of
depreciation
and
amortization
and major
scheduled
turnaround
expenses as
reflected 83.5 81.9 172.7 170.2
Major scheduled
turnaround
expenses 2.8 2.1 15.7 31.5
Depreciation and
amortization 31.7 30.9 65.0 61.8
----
Refining margin 130.2 222.5 352.4 334.2
FIFO impact,
(favorable)
unfavorable 15.4 (46.2) 15.7 (37.4)
---- ----- ---- -----
Refining margin
adjusted for
FIFO impact $145.6 $176.3 $368.1 $296.8
====== ====== ====== ======
The calculation of refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel for the three and six months ended June 30, 2017 and 2016 is as follows:
Consolidated Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
Total crude oil
throughput barrels
per day 213,841 202,536 214,103 193,345
Days in the period 91 91 181 182
Total crude oil
throughput barrels 19,459,531 18,430,776 38,752,643 35,188,790
========== ========== ========== ==========
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin $130.2 $222.5 $352.4 $334.2
Divided by: crude
oil throughput
barrels 19.5 18.4 38.8 35.2
---- ---- ---- ----
Refining margin per
crude oil
throughput barrel $6.69 $12.07 $9.10 $9.50
===== ====== ===== =====
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin
adjusted for FIFO
impact $145.6 $176.3 $368.1 $296.8
Divided by: crude
oil throughput
barrels 19.5 18.4 38.8 35.2
---- ---- ---- ----
Refining margin
adjusted for FIFO
impact per crude
oil throughput
barrel $7.48 $9.56 $9.51 $8.44
===== ===== ===== =====
Coffeyville Refinery
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
Total crude oil
throughput barrels
per day 133,819 127,410 132,297 116,887
Days in the period 91 91 181 182
Total crude oil
throughput barrels 12,177,529 11,594,310 23,945,757 21,273,434
========== ========== ========== ==========
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin $86.3 $147.3 $229.2 $212.6
Divided by: crude
oil throughput
barrels 12.2 11.6 23.9 21.3
---- ---- ---- ----
Refining margin per
crude oil
throughput barrel $7.09 $12.71 $9.57 $9.99
===== ====== ===== =====
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin
adjusted for FIFO
impact $96.4 $117.1 $240.8 $186.2
Divided by: crude
oil throughput
barrels 12.2 11.6 23.9 21.3
---- ---- ---- ----
Refining margin
adjusted for FIFO
impact per crude
oil throughput
barrel $7.92 $10.09 $10.06 $8.75
===== ====== ====== =====
Wynnewood Refinery
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
Total crude oil
throughput barrels
per day 80,022 75,126 81,806 76,458
Days in the period 91 91 181 182
Total crude oil
throughput barrels 7,282,002 6,836,466 14,806,886 13,915,356
========= ========= ========== ==========
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin $42.7 $74.0 $120.7 $119.4
Divided by: crude
oil throughput
barrels 7.3 6.8 14.8 13.9
--- --- ---- ----
Refining margin per
crude oil
throughput barrel $5.87 $10.83 $8.15 $8.58
===== ====== ===== =====
Three Months Ended Six Months Ended
June 30,
June 30,
--------
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except for $ per barrel data)
Refining margin
adjusted for FIFO
impact $47.9 $58.1 $124.8 $108.4
Divided by: crude
oil throughput
barrels 7.3 6.8 14.8 13.9
--- --- ---- ----
Refining margin
adjusted for FIFO
impact per crude
oil throughput
barrel $6.59 $8.51 $8.43 $7.79
===== ===== ===== =====
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (iii) (gain) loss on derivatives, net and (iv) current period settlements on derivative contracts. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three and six months ended June 30, 2017 and 2016 is as follows:
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
(in millions)
Net income (loss) $(19.2) $78.1 $47.8 $10.1
Add:
Interest expense
and other
financing costs,
net of interest
income 11.8 10.1 23.0 20.9
Income tax expense - - - -
Depreciation and
amortization 32.4 31.6 66.5 63.1
---- ---- ---- ----
EBITDA 25.0 119.8 137.3 94.1
Add:
FIFO impact,
(favorable)
unfavorable 15.4 (46.2) 15.7 (37.4)
Major scheduled
turnaround
expenses 2.8 2.1 15.7 31.5
(Gain) loss on
derivatives, net - 1.9 (12.2) 3.1
Current period
settlements on
derivative
contracts(1) (0.1) 7.1 1.1 28.5
Adjusted EBITDA $43.1 $84.7 $157.6 $119.8
===== ===== ====== ======
(1) Represents the portion of (gain) loss
on derivatives, net related to
contracts that matured during the
respective periods and settled with
counterparties. There are no
premiums paid or received at
inception of the derivative
contracts and upon settlement, there
is no cost recovery associated with
these contracts.
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Six Months
Ended Ended
June 30, 2017 June 30, 2017
------------- -------------
(in millions, except per unit
data)
Adjusted EBITDA $43.1 $157.6
Adjustments:
Less:
Cash needs for debt
service (10.0) (20.0)
Reserves for
environmental and
maintenance capital
expenditures (18.1) (53.1)
Reserves for major
scheduled turnaround
expenses (15.0) (30.0)
Reserves for future
operating needs - (54.5)
Available cash for
distribution $ - $ -
=== === === ===
Available cash for
distribution, per
common unit $ - $ -
Common units
outstanding 147.6 147.6
Q3 2017 Outlook. The table below summarizes our outlook for certain refining statistics for the third quarter of 2017. See "Forward-Looking Statements."
Q3 2017
-------
Low High
--- ----
Refinery Statistics:
Total crude oil throughput
(bpd) 180,000 200,000
Total refining production
(bpd) 190,000 210,000
View original content:http://www.prnewswire.com/news-releases/cvr-refining-reports-2017-second-quarter-results-300495150.html
SOURCE CVR Refining, LP
