CVR ENERGY, INC. (CVI)

[eastunder]

SUGAR LAND, Texas, May 06, 2020 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (CVI) today announced a net loss of $87 million, or 87 cents per diluted share, on net sales of $1.1 billion for the first quarter of 2020, compared to net income of $101 million, or $1.00 per diluted share, on net sales of $1.5 billion for the first quarter of 2019. First quarter 2020 EBITDA was a negative $38 million, compared to first quarter 2019 positive EBITDA of $230 million.


“CVR Energy’s first quarter 2020 results were negatively impacted by the global crude oil price war, lower throughput volumes due to the planned turnaround at the Coffeyville refinery and unprecedented refined product demand destruction caused by COVID-19,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “We have revised our business plan to protect our balance sheet by reducing costs, capital spending and refining runs to match customer demand, while continuing to focus on maintaining safe, reliable operations.

“CVR Energy’s Board of Directors has reduced our first quarter dividend to 40 cents per share to preserve cash as we believe there are better shareholder return opportunities in the current market environment, including the potential for industry consolidation,” Lamp said.

Petroleum

The Petroleum Segment reported a first quarter 2020 operating loss of $127 million on net sales of $1.1 billion, compared to operating income of $156 million on net sales of $1.4 billion in the first quarter of 2019.

Refining margin per total throughput barrel was $1.52 in the first quarter of 2020, compared to $16.55 during the same period in 2019. Crude oil pricing during the quarter led to an unfavorable inventory valuation impact of $136 million, including a $58 million loss on the value of inventory to reflect its net realizable value, or $9.54 per total throughout barrel. The favorable inventory valuation impact for the first quarter of 2019 was $32 million, or $1.68 per total throughput barrel. Unfavorable market pricing and crack spreads also contributed to the reduction in refining margins during the first quarter of 2020. Partially offsetting these impacts, the Petroleum Segment recognized a first quarter 2020 derivative gain of $46 million, or $3.20 per total throughput barrel, compared to a gain of $16 million, or 81 cents per total throughput barrel, for the first quarter of 2019. Included in this derivative gain for the first quarter of 2020 was an unrealized gain of $12 million, compared to an unrealized loss of $7 million for the first quarter of 2019.

First quarter 2020 combined total throughput was approximately 157,000 barrels per day (bpd), compared to approximately 213,000 bpd of combined total throughput for the first quarter of 2019. This decrease was primarily attributable to the turnaround at our Coffeyville refinery, which began in late February 2020.

Fertilizer

The Nitrogen Fertilizer Segment reported an operating loss of $5 million on net sales of $75 million for the first quarter of 2020, compared to operating income of $9 million on net sales of $92 million for the first quarter of 2019.

First quarter 2020 average realized gate prices for urea ammonia nitrate (UAN) decreased over the prior year, down 25 percent to $166 per ton, and ammonia was down 28 percent over the prior year to $264 per ton. Average realized gate prices for UAN and ammonia were $222 per ton and $367 per ton, respectively, for the first quarter of 2019.

CVR Partners’ fertilizer facilities produced a combined 201,000 tons of ammonia during the first quarter of 2020, of which 78,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 317,000 tons of UAN. During the first quarter 2019, the fertilizer facilities produced 179,000 tons of ammonia, of which 41,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 335,000 tons of UAN.

Corporate

The Company reported an income tax benefit of $36 million, or 27 percent of loss before income taxes, for the three months ended March 31, 2020, compared to income tax expense of $35 million, or 25.5 percent of income before income taxes for the three months ended March 31, 2019. The change in income tax expense was due primarily to a decrease in non-controlling interest and state income tax credits generated from the three months ended March 31, 2019 to the three months ended March 31, 2020. Additionally, the Company recognized investment income from marketable securities of $31 million during the three months ended March 31, 2020.

Cash, Debt and Dividend

Consolidated cash and cash equivalents was $805 million at March 31, 2020. Consolidated total debt and finance lease obligations was $1.7 billion at March 31, 2020, with no debt other than that held by the Nitrogen Fertilizer Segment and CVR Energy.

CVR Energy announced a first quarter 2020 cash dividend of 40 cents per share. The dividend, as declared by CVR Energy’s Board of Directors, will be paid on May 26, 2020, to stockholders of record as of the close of market on May 18, 2020.

CVR Partners will not pay a cash distribution for the 2020 first quarter.

On May 6, 2020, the Board of Directors of CVR Partners’ general partner authorized a unit repurchase program (the “Unit Repurchase Program”). The Unit Repurchase Program would enable CVR Partners to repurchase up to $10 million of its common units, giving CVR Partners another potential mechanism for returning cash to unitholders. Unit repurchases may be made from time-to-time through open market transactions, block trades, privately negotiated transactions, or otherwise and are subject to market conditions, as well as corporate, regulatory, and other considerations. This Unit Repurchase Program does not obligate CVR Partners to acquire any common units and may be cancelled or terminated by its general partner’s Board of Directors at any time.

First Quarter 2020 Earnings Conference Call

CVR Energy previously announced that it will host its first quarter 2020 Earnings Conference Call on Thursday, May 7, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters.

The first quarter 2020 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is [phone]. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/nc2m8r4m. A repeat of the call also can be accessed for 14 days by dialing [phone], conference ID 13701951.

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. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: impacts of COVID-19 on the Company and the economy including volatility in commodity prices; reductions in costs, capital spending and refining runs; customer demand; dividends and distributions including the timing, payment and amount (if any) thereof; impacts of global crude oil pricing; repurchases (if any) of CVR Partners common units including the amount and timing thereof; finished product pricing; refinery throughput, crude oil prices including impacts to inventory valuation; direct operating expenses, capital expenditures, depreciation and amortization; turnaround expenditures; continued safe and reliable operations; ammonia utilization rates; shareholder return opportunities; industry consolidation; refined product demand; derivative gains or losses; income tax benefits and expenses; and other matters. 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. Investors are cautioned that various factors may affect these forward-looking statements, including the health and economic effects of COVID-19, the rate of any economic improvement, demand for fossil fuels, price volatility of crude oil, other feedstocks and refined products (among others); the ability of CVR Partners to make cash distributions; potential operating hazards; costs of compliance with existing, or compliance with new, laws and regulations and potential liabilities arising therefrom; impacts of planting season on CVR Partners; general economic and business conditions; and other risks. For additional 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 and other 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 news 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 marketing business through its interest in CVR Refining and the nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own 34 percent of the common units of CVR Partners.

For further information, please contact:

Investor Contact:
Richard Roberts
CVR Energy, Inc.
[phone]
[e-mail]

Media Relations:
Brandee Stephens
CVR Energy, Inc.
[phone]
[e-mail]

Non-GAAP Measures

Our management uses certain non-GAAP performance measures to evaluate current and past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.

The following are non-GAAP measures presented for the period ended March 31, 2020:

EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense and (iii) depreciation and amortization expense.

Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.

Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other.

Petroleum EBITDA and Refining Margin, adjusted for Inventory Valuation Impacts - Petroleum EBITDA and Refining Margin adjusted to exclude the impact of current period market price and volume fluctuations on crude oil and refined product inventories purchased in prior periods and lower of cost or net realizable value adjustments, if applicable. We record our commodity inventories on the first-in-first-out basis. As a result, significant current period fluctuations in market prices and the volumes we hold in inventory can have favorable or unfavorable impacts on our refining margins as compared to similar metrics used by other publicly-traded companies in the refining industry.

Refining Margin and Refining Margin adjusted for Inventory Valuation Impacts, per Throughput Barrel - Refining Margin divided by the total throughput barrels during period, which is calculated as total throughput barrels per day times the number of days in the period.

Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.

Adjusted (Loss) Earnings per Share - (Loss) Earnings per share adjusted for inventory valuation impacts and other significant non-cash items on an after-tax basis.

Net Debt and Finance Lease Obligations Exclusive of Nitrogen Fertilizer - Net debt is total debt and finance lease obligations reduced for cash and cash equivalents.

Total Debt and Net Debt and Finance Lease Obligations to EBITDA Exclusive of Nitrogen Fertilizer - Total debt and net debt and finance lease obligations is calculated as the consolidated debt and net debt and finance lease obligations less the Nitrogen Fertilizer Segment debt and net debt and finance lease obligations as of the most recent period ended divided by EBITDA exclusive of the Nitrogen Fertilizer Segment for the most recent twelve-month period.

We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly-traded companies in the refining industry, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” section included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.




CVR Energy, Inc.
(all information in this release is unaudited)

Financial and Operational Data

Three Months Ended
March 31,
(in millions, except share data) 2020 2019
Consolidated Statement of Operations Data
Net sales $ 1,130 $ 1,486
Operating costs and expenses:
Cost of materials and other 1,058 1,101
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 119 126
Depreciation and amortization 62 65
Cost of sales 1,239 1,292
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below) 24 30
Depreciation and amortization 2 2
Loss on asset disposals — 2
Operating (loss) income (135 ) 160
Other (expense) income:
Interest expense, net (35 ) (26 )
Investment income from marketable securities 31 —
Other income, net 2 3
(Loss) income before income tax expense (137 ) 137
Income tax expense (36 ) 35
Net (loss) income (101 ) 102
Less: Net (loss) income attributable to noncontrolling interest (14 ) 1
Net (loss) income attributable to CVR Energy stockholders $ (87 ) $ 101

Basic and diluted (loss) earnings per share $ (0.87 ) $ 1.00
Dividends declared per share $ 0.80 $ 0.75

EBITDA* $ (38 ) $ 230

Weighted-average common shares outstanding - basic and diluted 100.5 100.5

_____________________________
* See “Non-GAAP Reconciliations” section below.


Selected Balance Sheet Data

(in millions) March 31, 2020 December 31, 2019
Cash and cash equivalents $ 805 $ 652
Working capital 892 678
Total assets 4,125 3,905
Total debt and finance lease obligations 1,691 1,195
Total liabilities 2,639 2,237
Total CVR stockholders’ equity 1,225 1,393


Selected Cash Flow Data

Three Months Ended
March 31,
(in millions) 2020 2019
Net cash flow provided by (used in):
Operating activities $ (58 ) $ 228
Investing activities (196 ) (42 )
Financing activities 407 (387 )
Net increase in cash and cash equivalents $ 153 $ (201 )


Selected Segment Data

(in millions) Petroleum Nitrogen Fertilizer Consolidated
Three Months Ended March 31, 2020
Net sales $ 1,057 $ 75 $ 1,130
Operating (loss) income (127 ) (5 ) (135 )
Net loss (130 ) (21 ) (101 )
EBITDA* (77 ) 11 (38 )

Capital expenditures (1)
Maintenance capital expenditures $ 37 $ 4 $ 43
Growth capital expenditures 3 2 5
Total capital expenditures $ 40 $ 6 $ 48





(in millions) Petroleum Nitrogen Fertilizer Consolidated
Three Months Ended March 31, 2019
Net sales $ 1,397 $ 92 $ 1,486
Operating income 156 9 160
Net income (loss) 149 (6 ) 102
EBITDA* 209 26 230

Capital expenditures (1)
Maintenance capital expenditures $ 18 $ 3 $ 21
Growth capital expenditures 2 — 2
Total capital expenditures $ 20 $ 3 $ 23

_____________________________
* See “Non-GAAP Reconciliations” section below.
(1) Capital expenditures are shown exclusive of capitalized turnaround expenditures and capitalized software costs.


Selected Balance Sheet Data

(in millions) Petroleum Nitrogen Fertilizer Consolidated
March 31, 2020
Cash and cash equivalents $ 434 $ 58 $ 805
Total assets 2,961 1,134 4,125
Total debt and finance lease obligations 64 633 1,691

December 31, 2019
Cash and cash equivalents $ 583 $ 37 $ 652
Total assets 3,187 1,138 3,905
Total debt and finance lease obligations 563 632 1,195


Petroleum Segment

Key Operating Metrics per Total Throughput Barrel

Three Months Ended
March 31,
2020 2019
Refining margin * $ 1.52 $ 16.55
Refining margin adjusted for inventory valuation impacts * 11.06 14.87
Direct operating expenses * 5.87 4.74

_____________________________
* See “Non-GAAP Reconciliations” section below.


Throughput Data by Refinery

Three Months Ended
March 31,
(in bpd) 2020 2019
Coffeyville
Regional crude 38,874 41,591
WTI 29,461 67,016
Midland WTI — 12,702
Condensate 4,687 5,293
Heavy Canadian 2,549 7,563
Other feedstocks and blendstocks 7,701 9,293
Wynnewood
Regional crude 51,822 44,363
WTL 5,971 —
Midland WTI 2,019 12,507
Condensate 9,429 7,754
Other feedstocks and blendstocks 4,005 4,725
Total throughput 156,518 212,807


Production Data by Refinery

Three Months Ended
March 31,
(in bpd) 2020 2019
Coffeyville
Gasoline 44,519 73,856
Distillate 33,261 59,529
Other liquid products 3,717 6,473
Solids 2,719 4,970
Wynnewood
Gasoline 39,505 34,312
Distillate 28,755 27,356
Other liquid products 2,454 6,123
Solids 25 28
Total production 154,955 212,647

Liquid volume yield (as % of total throughput) 97.2 % 97.6 %





Three Months Ended
March 31,
2020 2019
Market Indicators (dollars per barrel)
West Texas Intermediate (WTI) NYMEX $ 45.78 $ 54.90
Crude Oil Differentials to WTI:
Brent 5.04 8.94
WCS (heavy sour) (17.77 ) (10.51 )
Condensate (1.14 ) (1.17 )
Midland Cushing (0.06 ) (1.18 )
NYMEX Crack Spreads:
Gasoline 10.37 11.75
Heating Oil 18.98 26.38
NYMEX 2-1-1 Crack Spread 14.67 19.07
PADD II Group 3 Basis:
Gasoline (3.12 ) (2.05 )
Ultra Low Sulfur Diesel (1.80 ) (1.56 )
PADD II Group 3 Product Crack Spread:
Gasoline 7.25 9.70
Ultra Low Sulfur Diesel 17.18 24.82
PADD II Group 3 2-1-1 12.21 17.26


Q2 2020 Petroleum Segment Outlook

The table below summarizes our outlook for certain operational statistics and financial information for the second quarter of 2020. See “Forward-Looking Statements” above.

Q2 2020
Low High
Total throughput (bpd) 130,000 150,000
Direct operating expenses (1) (in millions) $ 75 $ 85
Total capital expenditures (2) (in millions) $ 30 $ 40
Total turnaround expenditures (2) (in millions) $ 20 $ 25

_____________________________
(1) Direct operating expenses are shown exclusive of depreciation and amortization.
(2) Capital expenditures and turnaround expenditures are disclosed on an accrual basis.


Nitrogen Fertilizer Segment:

Key Operating Data:

Ammonia Utilization Rates (2) Two Years Ended March 31,
(capacity utilization) 2020 2019
Consolidated 93 % 92 %
Coffeyville 93 % 94 %
East Dubuque 93 % 91 %

_____________________________
(3) Reflects ammonia utilization rates on a consolidated basis and at each of the Nitrogen Fertilizer facilities. Utilization is an important measure used by management to assess operational output at each of the facilities. Utilization is calculated as actual tons produced divided by capacity. The Nitrogen Fertilizer Segment presents utilization on a two-year rolling average to take into account the impact of current turnaround cycles on any specific period. The two-year rolling average is a more useful presentation of the long-term utilization performance of our plants. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With the Nitrogen Fertilizer Segments’ efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well the facilities operate.


Sales and Production Data

Three Months Ended
March 31,
2020 2019
Consolidated sales (thousand tons):
Ammonia 54 36
UAN 284 288

Consolidated product pricing at gate (dollars per ton) (1):
Ammonia $ 264 $ 367
UAN 166 222

Consolidated production volume (thousand tons):
Ammonia (gross produced) (2) 201 179
Ammonia (net available for sale) (2) 78 41
UAN 317 335

Feedstock:
Petroleum coke used in production (thousand tons) 125 132
Petroleum coke (dollars per ton) $ 44.68 $ 37.70
Natural gas used in production (thousands of MMBtu) (3) 2,141 1,440
Natural gas used in production (dollars per MMBtu) (3) $ 2.42 $ 3.83
Natural gas in cost of materials and other (thousands of MMBtus) (3) 1,418 1,008
Natural gas in cost of materials and other (dollars per MMBtu) (3) $ 2.80 $ 3.87

_____________________________
(1) Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
(2) Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
(3) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.


Key Market Indicators

Three Months Ended
March 31,
2020 2019
Ammonia — Southern Plains (dollars per ton) $ 272 $ 427
Ammonia — Corn belt (dollars per ton) 364 497
UAN — Corn belt (dollars per ton) 169 229

Natural gas NYMEX (dollars per MMBtu) $ 1.87 $ 2.88


Q2 2020 Nitrogen Fertilizer Segment Outlook

The table below summarizes our outlook for certain operational statistics and financial information for the second quarter of 2020. See “Forward-Looking Statements” above.

Q2 2020
Low High
Ammonia utilization rates (1)
Consolidated 95 % 100 %
Coffeyville 95 % 100 %
East Dubuque 95 % 100 %

Direct operating expenses (2) (in millions) $ 35 $ 40

Total capital expenditures (3) (in millions) $ 6 $ 10

_____________________________
(1) Ammonia utilization rates exclude the impact of Turnarounds.
(2) Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and impacts of inventory adjustments.
(3) Capital expenditures are disclosed on an accrual basis.


Non-GAAP Reconciliations:

Reconciliation of Net (Loss) Income to EBITDA

Three Months Ended
March 31,
(in millions) 2020 2019
Net (loss) income $ (101 ) $ 102
Add:
Interest expense, net 35 26
Income tax (benefit) expense (36 ) 35
Depreciation and amortization 64 67
EBITDA $ (38 ) $ 230


Reconciliation of Petroleum Segment Net (Loss) Income to EBITDA and EBITDA Adjusted for Inventory Valuation Impacts

Three Months Ended
March 31,
(in millions) 2020 2019
Petroleum net (loss) income $ (130 ) $ 149
Add:
Interest expense, net 5 11
Depreciation and amortization 48 49
Petroleum EBITDA $ (77 ) $ 209
Inventory valuation impacts, (favorable) unfavorable (1) (2) 136 (32 )
Petroleum EBITDA adjusted for inventory valuation impacts $ 59 $ 177

_____________________________
(1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.
(2) Includes an inventory valuation charge of $58 million, as inventories are stated at the lower of cost or net realizable value.


Reconciliation of Petroleum Segment Gross Profit to Refining Margin and Refining Margin Adjusted for Inventory Valuation Impacts

Three Months Ended
March 31,
(in millions) 2020 2019
Net sales $ 1,057 $ 1,397
Cost of materials and other 1,035 1,080
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 84 91
Depreciation and amortization 48 49
Gross (loss) profit (110 ) 177
Add:
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 84 91
Depreciation and amortization 48 49
Refining margin 22 317
Inventory valuation impacts, (favorable) unfavorable (1) (2) 136 (32 )
Refining margin adjusted for inventory valuation impacts $ 158 $ 285

_____________________________
(1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.
(2) Includes an inventory valuation charge of $58 million, as inventories are stated at the lower of cost or net realizable value.


Reconciliation of Petroleum Segment Total Throughput Barrels

Three Months Ended
March 31,
2020 2019
Total throughput barrels per day 156,518 212,807
Days in the period 91 90
Total throughput barrels 14,243,161 19,152,670


Reconciliation of Petroleum Segment Refining Margin per Total Throughput Barrels

Three Months Ended
March 31,
(in millions, except for per throughput barrel data) 2020 2019
Refining margin $ 22 $ 317
Divided by: total throughput barrels 14 19
Refining margin per total throughput barrel $ 1.52 $ 16.55


Reconciliation of Petroleum Segment Refining Margin Adjusted for Inventory Valuation Impact per Total Throughput Barrel

Three Months Ended
March 31,
(in millions, except for throughput barrel data) 2020 2019
Refining margin adjusted for inventory valuation impacts $ 158 $ 285
Divided by: total throughput barrels 14 19
Refining margin adjusted for inventory valuation impacts per total throughput barrel $ 11.06 $ 14.87


Reconciliation of Petroleum Segment Direct Operating Expenses per Total Throughput Barrel

Three Months Ended
March 31,
(in millions, except for throughput barrel data) 2020 2019
Direct operating expenses (exclusive of depreciation and amortization) $ 84 $ 91
Divided by: total throughput barrels 14 19
Direct operating expenses per total throughput barrel $ 5.87 $ 4.74


Reconciliation of Nitrogen Fertilizer Segment Net Loss to EBITDA

Three Months Ended
March 31,
(in millions) 2020 2019
Nitrogen fertilizer net loss $ (21 ) $ (6 )
Add:
Interest expense, net 16 16
Depreciation and amortization 16 16
Nitrogen Fertilizer EBITDA $ 11 $ 26


Reconciliation of Basic and Diluted (Loss) Earnings per Share to Adjusted (Loss) Earnings per Share

Three Months Ended
March 31,
2020 2019
Basic and diluted (loss) earnings per share $ (0.87 ) $ 1.00
Adjustments:
Inventory valuation impacts (1) 1.00 (0.24 )
Unrealized gain on marketable securities (1) (0.22 ) —
Adjusted (loss) earnings per share $ (0.09 ) $ 0.76

_____________________________
(1) Amounts are shown after-tax, using the Company’s marginal tax rate, and are presented on a per share basis using the weighted average shares outstanding for each period.


Reconciliation of Total Debt and Net Debt and Finance Lease Obligations to EBITDA Exclusive of Nitrogen Fertilizer

Twelve Months Ended
March 31, 2020
Total debt and finance lease obligations (1) $ 1,691
Less:
Nitrogen Fertilizer debt and finance lease obligations 633
Total debt and finance lease obligations exclusive of Nitrogen Fertilizer 1,058

EBITDA exclusive of Nitrogen Fertilizer $ 519

Total debt and finance lease obligations to EBITDA exclusive of Nitrogen Fertilizer 2.04

Consolidated cash and cash equivalents $ 805
Less:
Nitrogen Fertilizer cash and cash equivalents 58
Cash and cash equivalents exclusive of Nitrogen Fertilizer 747

Net debt and finance lease obligations exclusive of Nitrogen Fertilizer (2) $ 311

Net debt and finance lease obligations to EBITDA exclusive of Nitrogen Fertilizer (2) 0.60

_____________________________
(1) Amounts are shown inclusive of the current portion of finance lease obligations.
(2) Net debt represents total debt and finance lease obligations exclusive of cash and cash equivalents.



Three Months Ended Twelve Months Ended
March 31, 2020
June 30,
2019 September 30,
2019 December 31,
2019 March 31,
2020
Consolidated
Net income (loss) $ 128 $ 104 $ 28 $ (101 ) $ 159
Add:
Interest expense, net 26 26 24 35 111
Income tax expense (benefit) 41 34 19 (36 ) 58
Depreciation and amortization 78 71 71 64 284
EBITDA $ 273 $ 235 $ 142 $ (38 ) $ 612

Nitrogen Fertilizer
Net (loss) income $ 19 $ (23 ) $ (25 ) $ (21 ) $ (50 )
Add:
Interest expense, net 16 16 16 16 64
Depreciation and amortization 25 18 20 16 79
EBITDA $ 60 $ 11 $ 11 $ 11 $ 93

EBITDA exclusive of Nitrogen Fertilizer $ 213 $ 224 $ 131 $ (49 ) $ 519






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Billionaire Bill Ackman Picks up These 2 Stocks as Markets RecoverBusinessTipRanks
Billionaire Bill Ackman Picks up These 2 Stocks as Markets RecoverBillionaire Bill Ackman is growing increasingly optimistic. The CEO of investment firm Pershing Square Capital Management was able to take $27 million and turn it into $2.6 billion using a series of credit-default swaps just last February. Looking to Ackman for inspiration, we ran two stocks the hedge fund manager snapped up recently through TipRanks' database to get the analyst community's take on them.

Paypal misses on Q1 earningsBusinessYahoo Finance Video
Paypal misses on Q1 earningsPaypal reported a miss on earnings for their first quarter. Shares fell after the company released that adjusted earnings per share fell to 66 cents from 78 cents. Yahoo Finance Live breaks down the numbers.

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One Car Maker That Will Emerge Stronger From the Pandemic. It’s Not Who You Might Think.It sounds impossible, but that's what Morgan Stanley analyst Adam Jonas believes about one of the companies he covers. Ferrari will generate positive free cash flow in 2020. Ferrari is launching four models in 2020, including the SF90 Stradale, the 812 GTS, F8 Spider and the Roma grand touring model.

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Is Delta Air Lines Stock a Buy?BusinessMotley Fool
Is Delta Air Lines Stock a Buy?A misleading headline Flashed across business and finance news outlets on Monday was the headline that Warren Buffett sold all his airline stocks. Although some outlets are guiltier than others with their packaging of this news, the headline could easily be misinterpreted as saying that Buffett sold all his airline stocks in one fell swoop or in a day or two, when in reality, the sale occurred gradually over the month of April. In fact, Buffett had already announced his sale of large portions of Southwest and Delta in April.

Japan approves Gilead Sciences' remdesivir as COVID-19 drugBusinessReuters
Japan approves Gilead Sciences' remdesivir as COVID-19 drugJapan on Thursday approved Gilead Sciences Inc's remdesivir as a treatment for COVID-19, making it the country's first officially authorized drug to tackle the coronavirus disease. Japan reached the decision just three days after the U.S. drugmaker filed for fast-track approval for the treatment. "There has so far been no coronavirus medicine available here so it is a significant step for us to approve this drug," a Japanese health ministry official said at a press briefing.

Software Company Sues to Avoid Repaying $750,000 PPP LoanBusinessBloomberg
Software Company Sues to Avoid Repaying $750,000 PPP LoanZumasys Inc. said in a suit filed Monday against the Small Business Administration and Treasury Department that it is now concerned it will have to pay back the forgivable loan the company and its two subsidiaries received in mid-April, some of which has already been spent to keep nearly 70 employees on payroll. Facing criticism that much of the money intended to help small businesses weather the economic shock of the coronavirus pandemic was going to larger enterprises, the government said on April 23 that companies applying for PPP loans were required to certify that federal assistance was “necessary,” taking into account their access to other sources of liquidity. The SBA and Treasury Department didn't immediately respond to requests for comment on the suit.

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Why OPKO Health Missed Q1 Revenue EstimatesBusinessMotley Fool
Why OPKO Health Missed Q1 Revenue EstimatesBy the numbers First-quarter revenue was $211.5 million, down 5% year over year. This result fell short of the average analyst estimate of $216.9 million. The company announced a Q1 net loss of $59.1 million, or $0.09 per share, based on generally accepted accounting principles (GAAP).

What to Watch When The Trade Desk Reports Earnings TodayBusinessMotley Fool
What to Watch When The Trade Desk Reports Earnings TodayRevenue growth When The Trade Desk reported its fourth quarter, management said it expected its first-quarter revenue to come in at $169 million. This would have implied an impressive 40% year over year growth rate -- an acceleration from 35% revenue growth in the fourth quarter of 2019. But this forecast was provided before the coronavirus became a global pandemic and subsequently hit the United States economy hard.

3 Stocks to Buy With Dividends Yielding More Than 5%BusinessMotley Fool
3 Stocks to Buy With Dividends Yielding More Than 5%Built for stable and growing income I've called net-lease real estate investment trust Realty Income the best all-around dividend stock in the market, and the company's first-quarter earnings report illustrates why. The company, which owns primarily single-tenant retail real estate, reported 7.3% year-over-year growth in funds from operations (the REIT version of earnings) and continues to make new investments to grow the portfolio. Here's the most impressive part: While many of its peers in the retail real estate space are struggling, Realty Income is doing relatively well.

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How He Made $7 Million Trading Stocks From HomeWith no prior experience, Kyle Dennis decided to invest in stocks. He owes his success to these strategies.
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Locked-Down Drinkers Lose Their Thirst for Budweiser, StellaBusinessBloomberg
Locked-Down Drinkers Lose Their Thirst for Budweiser, StellaShipments plunged the most in China, where the effect of Covid-19 lockdowns hit hardest because they started earlier than in the U.S. and Europe. As demand evaporates amid a global shutdown of bars and restaurants, AB InBev and rivals Heineken NV and Carlsberg A/S are racing to find ways to cut costs to reduce the effect on profit. Longer-term, as the pain from a pandemic-induced recession spreads from blue-collar to white-collar workers, that could also harm the collection of niche premium labels that AB InBev has built up in past years.

Pelosi signals support for massive new payroll subsidies as small-business loan fund nears expirationBusinessMarketWatch
Pelosi signals support for massive new payroll subsidies as small-business loan fund nears expirationHouse Speaker Nancy Pelosi held a virtual roundtable with small-business owners and advocacy organizations Tuesday afternoon as the federal government's program for supporting businesses with fewer than 500 employees was well on its way to exhausting the roughly $670 billion Congress has allocated to it so far. The speaker said that she was working closely with fellow Democrats on efforts to reform the Paycheck Protection Program to ensure greater transparency and greater access by the smallest of small businesses, but she also stressed that Congress should be “expanding support beyond PPP to provide more resources” to the tens of millions of small businesses impacted by the COVID-19 epidemic, urging small-business owners to support a sweeping Paycheck Guarantee Act that would reimburse employers of all types and sizes for payroll and benefit costs.

GE Poised to Bounce Back to $10 Per Share According to Investor James RichmanBusinessInsider Monkey
GE Poised to Bounce Back to $10 Per Share According to Investor James RichmanThe value of General Electric Company (NYSE:GE) shares has dropped significantly by more than 54% since its recent highs of $13.19 in mid-February and lockdown due to the growing effects of coronavirus. This comes as alarming news to most of its long term investors, especially when one of its biggest cheerleaders, billionaire investor Warren Buffet, has recently changed his tone about the company.

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Stimulus money to come later than projected for millions of AmericansU.S.USA TODAY
Stimulus money to come later than projected for millions of AmericansAfter weeks or more of delay, another round of stimulus cash is set to go out soon and finally reach some lower income families who desperately want to know the whereabouts of their Economic Impact Payments. If things go as expected, most eligible Supplemental Security Income recipients and veterans will spot Economic Impact Payments via their Direct Express card no later than mid-May, according to a fact sheet dated May 5 from Direct Express. The Internal Revenue Service plans to put those stimulus payments automatically on existing Direct Express cards.

These Pot Stocks May Need to Enact a Reverse SplitBusinessMotley Fool
These Pot Stocks May Need to Enact a Reverse SplitWhile these huge drops have some investors searching for bargains, the reality is that a handful of pot stocks listed on the New York Stock Exchange (NYSE) or Nasdaq have fallen so much that they may soon have no choice but to enact a reverse split in order to avoid being booted from these exchanges. Delisting is a real threat Though this might sound like fearmongering, it's not. Last month, Aurora Cannabis (NYSE: ACB) announced that it would enact a 1-for-12 reverse split on or about May 11, 2020.

Square posts Q1 lossBusinessYahoo Finance Video
Square posts Q1 lossSquare reports a loss on their first quarter earnings with EPS short $0.15 from expectations and an adjusted EBITDA of $9 million, an 85% drop YoY.

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3 Reasons Bristol Myers Squibb's Revenue Skyrocketed in Q1BusinessMotley Fool
3 Reasons Bristol Myers Squibb's Revenue Skyrocketed in Q1Bristol Myers Squibb (NYSE: BMY) announced its first-quarter results before the market opened on Thursday. Revenue growth was even more impressive. BMS reported Q1 revenue of nearly $10.8 billion, an 82% jump from the prior-year period.

Moderna Rallies on Accelerated Covid-19 Vaccine PushBusinessBloomberg
Moderna Rallies on Accelerated Covid-19 Vaccine PushModerna Inc. jumped as much as 14% on Thursday on accelerated plans to develop an experimental vaccine for Covid-19. The vaccine, mRNA-1273, could be in late-stage study by early summer, Moderna said in a statement. The biotechnology company is preparing for an application for its product to be approved as soon as 2021.

3 Dividend Stocks Perfect for RetireesBusinessMotley Fool
3 Dividend Stocks Perfect for RetireesDividend stocks are a perfect fit for a retiree's portfolio considering the supplemental income they provide, which also adds to investor returns in the long run as compounding works its magic. In retirement, it's ideal to own stocks that don't just pay out stable and regular dividends, but also increase them regularly for greater long-term returns. A utility stock is an obvious choice for a retiree given the defensive nature of the business of utilities, which enables them to generate stable cash flows and pay regular dividends.

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Novavax (NVAX) Receives Bullish Praise From a Wall Street ProBusinessSmarterAnalyst
Novavax (NVAX) Receives Bullish Praise From a Wall Street ProThe company was quick off the mark to begin developing a vaccine and has positioned itself at the forefront of the fight against COVID-19. Accordingly, the share price has shot up by a massive 345% year-to-date. But there's more potential upside from here, argues H.C. Wainwright analyst Vernon Bernardino.

If Norwegian Cruise Line Goes Down, Carnival and Royal Caribbean Will Pay the PriceBusinessMotley Fool
If Norwegian Cruise Line Goes Down, Carnival and Royal Caribbean Will Pay the PriceGiven the situation the country's third-largest cruise line operator finds itself in, with passengers on canceled sailings having to choose between refunds and future cruise credit, this is just the kind of warning that can become a self-fulfilling prophecy. Rough waters Weeks of canceled sailings have now become months for Norwegian Cruise Line and larger peers Carnival (NYSE: CCL) (NYSE: CUK) and Royal Caribbean International (NYSE: RCL). Customers are being given the choice to either get a refund or convert what they have already paid into credit on future sailings.

Innovative Industrial Properties Earnings and Revenue Miss ExpectationsBusinessMotley Fool
Innovative Industrial Properties Earnings and Revenue Miss ExpectationsInnovative Industrial Properties (NYSE: IIPR), a cannabis industry-focused real estate investment trust (REIT), reported first-quarter 2020 results after the market closed on Wednesday. Here's how the quarter worked out for Innovative Industrial Properties (also known as IIP) and its investors. *Adjusted funds from operations (AFFO) is a closely watched metric for REITs, as it's the main driver of dividend changes.

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Here's Why MacroGenics Stock Is Skyrocketing 171% TodayBusinessMotley Fool
Here's Why MacroGenics Stock Is Skyrocketing 171% TodayWhat happened After MacroGenics (NASDAQ: MGNX) updated investors on its clinical-stage drug pipeline and current financial position, its shares are soaring 171% as of 12:45 am EDT Wednesday. So what MacroGenics' lead drug candidate is margetuximab, an optimized formulation of the top-selling breast cancer drug Herceptin. After the market's closing bell on Tuesday, the biotech company's management said it remains on track to report final overall survival (OS) data for the phase 3 SOPHIA study of margetuximab in HER2-positive metastatic breast cancer this year.

A wave of bankruptcies, surging taxes, and Americans harboring lasting scars from coronavirus lockdowns — the head of world’s largest asset manager warns of grim outlookBusinessMarketWatch
A wave of bankruptcies, surging taxes, and Americans harboring lasting scars from coronavirus lockdowns — the head of world’s largest asset manager warns of grim outlookThe era of coronavirus has already been hard on the American psyche, but the CEO of the world's largest asset manager cautions that everyone should brace for even rougher days ahead, as the U.S. attempts to emerge from the worst public-health crisis in more than a century. BlackRock's Chief Executive Larry Fink forecast a dour near-term outlook for the economy as states and businesses grapple with reopening from COVID-19 lockdowns that have likely driven the U.S., and the rest of the world, into a deep recession, according to a report from Bloomberg News. The news organization reported that Fink, speaking privately with clients of a wealth advisory firm, outlined an unattractive future in which the economy continues to weaken, bankruptcies soar and American consumers — the lifeblood of economic vitality in America — remain psychologically scarred from the impact of the deadly pathogen that has infected more than 3.7 million people (1.2 million in the U.S. alone) and claimed more than 260,000 lives globally, according to data compiled by Johns Hopkins University.