CVR ENERGY, INC. (CVI)

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CVR-Energy Reports 2014 Fourth-Quarter and Full-Year-Results And-Announces Cash-Dividend of 50 Cents

Last update: 19/02/2015 8:30:20 am

CVR Energy Reports 2014 Fourth Quarter and Full Year Results And Announces Cash Dividend of 50 Cents

- 2014 cumulative cash dividends of $412.4 million or $4.75 per share

PR Newswire

SUGAR LAND, Texas, Feb. 19, 2015

SUGAR LAND, Texas, Feb. 19, 2015 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) today announced full year 2014 net income of $173.9 million, or $2.00 per diluted share, on net sales of $9,109.5 million, compared to net income for full year 2013 of $370.7 million, or $4.27 per diluted share, on net sales of $8,985.8 million. Full year 2014 adjusted EBITDA, a non-GAAP financial measure, was $473.5 million compared to full year 2013 adjusted EBITDA of $659.7 million.

For the fourth quarter of 2014, the company reported a net loss of $44.4 million, or a loss of 51 cents per diluted share, on net sales of $1,841.8 million, compared to a fourth quarter 2013 net loss of $21.7 million, or a loss of 25 cents per diluted share, on net sales of $2,436.0 million. Net income for the 2014 fourth quarter was negatively affected by an unfavorable first-in, first-out (FIFO) accounting impact of $154.6 million.

Fourth quarter 2014 adjusted EBITDA was $81.7 million compared to adjusted EBITDA of $110.0 million for the same period a year earlier.

"Our fourth quarter results were primarily impacted by volatile crude and product markets as well as an unplanned outage of the Fluid Catalytic Cracking Unit at CVR Refining's Wynnewood refinery," said Jack Lipinski, CVR Energy's chief executive officer. "Refining margins have significantly improved since mid-January, and the Coffeyville and Wynnewood refineries have operated well year to date".

"At CVR Partners, the fertilizer plant posted some of its highest production and operating rates for the year during the fourth quarter," Lipinski said.

CVR Energy also announced a fourth quarter 2014 cash dividend of 50 cents per share. The dividend, as declared by CVR Energy's Board of Directors, will be paid on March 9, 2015, to stockholders of record on March 2, 2015.

Today, CVR Refining announced a 2014 fourth quarter cash distribution of 37 cents per common unit, and CVR Partners announced a 2014 fourth quarter cash distribution of 41 cents per common unit.

"We continue to return cash to stockholders through quarterly dividends, " Lipinski said. "CVR Energy's fourth quarter cash dividend of 50 cents per share brings the cumulative cash dividends paid or declared for 2014 to $4.75 per share."

Petroleum Business

The petroleum business, which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported a fourth quarter 2014 operating loss of $113.3 million, on net sales of $1,772.8 million, compared to fourth quarter 2013 operating income of $14.9 million, on net sales of $2,360.9 million.

Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $11.28 in the 2014 fourth quarter, compared to $11.48 during the same period in 2013. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the 2014 fourth quarter was $5.76, compared to $4.27 in the fourth quarter of 2013.

Fourth quarter 2014 throughputs of crude oil and all other feedstocks and blendstocks totaled 212,263 barrels per day (bpd), compared to fourth quarter 2013 throughputs of crude oil and all other feedstocks and blendstocks of 216,876 bpd.

Nitrogen Fertilizers Business

The fertilizer business, operated by CVR Partners, reported fourth quarter 2014 operating income of $26.5 million on net sales of $74.4 million, compared to operating income of $29.7 million on net sales of $84.3 million for the fourth quarter of 2013.

For the fourth quarter of 2014, average realized gate prices for UAN and ammonia were $247 per ton and $547 per ton, respectively, compared to $253 per ton and $478 per ton, respectively, for the same period in 2013.

CVR Partners produced 105,900 tons of ammonia and purchased an additional 3,900 tons of ammonia during the fourth quarter of 2014, of which 4,400 net tons were available for sale while the rest was upgraded to 259,600 tons of UAN. In the 2013 fourth quarter, the plant produced 98,900 tons of ammonia and purchased an additional 12,300 tons of ammonia, of which 1,600 net tons were available for sale and the remainder was upgraded to 270,100 tons of UAN.

Cash and Debt

Consolidated cash and cash equivalents, which included $370.2 million for CVR Refining and $79.9 million for CVR Partners, was $753.7 million at Dec. 31, 2014. Consolidated total debt was $674.9 million at Dec. 31, 2014. The company had no debt exclusive of CVR Refining's and CVR Partners' debt.

Fourth Quarter 2014 Earnings Conference Call

CVR Energy previously announced that it will host its fourth quarter 2014 Earnings Conference Call for analysts and investors on Thursday, Feb. 19, at 3 p.m. Eastern.

The Earnings Conference Call will be broadcast live over the Internet at www.videonewswire.com/event.asp?id=101504. For investors or analysts who want to participate during the call, the dial-in number is [phone].

For those unable to listen live, the Webcast will be archived and available for 14 days at http://www.videonewswire.com/event.asp?id=101504. A repeat of the conference call can be accessed by dialing [phone], conference ID 13600358.

Forward Looking Statements

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "explore," "evaluate," "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 Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

About CVR Energy, Inc.

Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in two limited partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own a majority of the common units representing limited partner interests of CVR Refining and CVR Partners.

For further information, please contact:

Investor Contacts:

Jay Finks

CVR Energy, Inc.

913-982-0481

[e-mail]

Media Relations:

Angie Dasbach

CVR Energy, Inc.

281-207-3550

[e-mail]

CVR Energy, Inc.

Financial and Operational Data (all information in this release is unaudited other than the statements of operations and cash flow data for the year ended December 31, 2013 and the balance sheet data as of December 31, 2013).



Three Months
Ended December Year Ended
31, December 31,
------------------ --------------------
2014 2013 2014 2013
-------- -------- -------- ----------
(in millions, except per share data)
Consolidated
Statement of
Operations Data:
Net sales $1,841.8 $2,436.0 $9,109.5 $8,985.8
Cost of product
sold 1,733.4 2,219.7 8,066.0 7,563.2
Direct operating
expenses 134.7 110.6 515.1 455.8
Selling, general
and
administrative
expenses 23.5 28.6 109.7 113.5
Depreciation and
amortization 40.8 37.4 154.4 142.8
-------- -------- -------- --------
Operating income
(loss) (90.6) 39.7 264.3 710.5
Interest expense
and other
financing costs (11.2) (10.9) (40.0) (50.5)
Interest income 0.2 0.3 0.9 1.2
Gain (loss) on
derivatives,
net 14.5 (115.9) 185.6 57.1
Loss on
extinguishment
of debt -- -- -- (26.1)
Other income
(expense), net (3.6) 7.1 (3.7) 13.5
-------- -------- -------- --------
Income (loss)
before income
tax expense
(benefit) (90.7) (79.7) 407.1 705.7
Income tax
expense
(benefit) (21.0) (39.1) 97.7 183.7
-------- -------- -------- --------
Net income (loss) (69.7) (40.6) 309.4 522.0
Less: Net income
(loss)
attributable to
noncontrolling
interest (25.3) (18.9) 135.5 151.3
-------- -------- -------- --------
Net income (loss)
attributable to
CVR Energy
stockholders $ (44.4) $ (21.7) $ 173.9 $ 370.7
======= ======= ======= =======

Basic earnings
(loss) per

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February 19, 2015 08:30 ET (13:30 GMT)