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CVR-Refining Reports 2014 Fourth-Quarter and Full-Year-Results And-Announces Cash-Distribution of 37 Cents

Last update: 19/02/2015 8:30:23 am

CVR Refining Reports 2014 Fourth Quarter and Full Year Results And Announces Cash Distribution of 37 Cents

PR Newswire

SUGAR LAND, Texas, Feb. 19, 2015

SUGAR LAND, Texas, Feb. 19, 2015 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $358.7 million on net sales of $8,829.7 million for full year 2014, compared to net income of $590.4 million on net sales of $8,683.5 million for full year 2013. Adjusted EBITDA, a non-GAAP financial measure, for full year 2014 was $621.6 million, compared to adjusted EBITDA of $712.0 million for the previous year.

For the fourth quarter 2014, the company reported a net loss of $108.5 million on net sales of $1,772.8 million, compared to a net loss of $110.2 million on net sales of $2,360.9 million for the fourth quarter of 2013. 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 $104.6 million compared to adjusted EBITDA of $117.5 million for the 2013 fourth quarter.

"Our fourth quarter results were significantly impacted by volatile crude and product markets, which resulted in low refining margins in December," said Jack Lipinski, chief executive officer. "Our results were further impacted by a 16-day outage of the Fluid Catalytic Cracking Unit at the Wynnewood refinery.

"Refining margins have significantly improved since mid-January," Lipinski continued. "In addition, our refineries have operated well year to date."

Consolidated Operations

Fourth quarter 2014 throughputs of crude oil and all other feedstocks and blendstocks totaled 212,263 barrels per day (bpd). Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 216,876 bpd for the same period in 2013.

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.

Distributions

CVR Refining also announced today a fourth quarter 2014 distribution of 37 cents per common unit. The distribution, as set by the board of CVR Refining GP, LLC, the general partner of CVR Refining, will be paid on March 9, 2015, to unitholders of record on March 2, 2015.

CVR Refining's fourth quarter cash distribution brings the cumulative cash distributions paid or declared for 2014 to $2.85 per common unit.

CVR Refining, LP 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.

Fourth Quarter 2014 Earnings Conference Call

CVR Refining previously announced that it will host its fourth quarter 2014 Earnings Conference Call for analysts and investors on Thursday, Feb. 19, at 1 p.m. Eastern.

The Earnings Conference Call will be broadcast live over the Internet at http://www.videonewswire.com/event.asp?id=101500. 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=101500. A repeat of the conference call can be accessed by dialing [phone], conference ID 13600361.

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 supporting logistics assets including approximately 336 miles of owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and more than six million barrels of owned and leased crude oil storage capacity.

For further information, please contact:

Investor Contacts:

Jay Finks

CVR Refining, LP

[phone]

[e-mail]

Media Relations:

Angie Dasbach

CVR Refining, LP

[phone]

[e-mail]

CVR Refining, LP

Financial and Operational Data (all information in this
release is unaudited other than the statement 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 unit data)
Statement of
Operations Data:
Net sales $1,772.8 $2,360.9 $8,829.7 $8,683.5
Cost of product
sold 1,723.8 2,209.7 8,013.4 7,526.7
Direct operating
expenses 112.9 87.2 416.0 361.7
Selling, general
and
administrative
expenses 16.8 20.0 70.6 77.8
Depreciation and
amortization 32.6 29.1 122.5 114.3
-------- -------- -------- --------
Operating income
(loss) (113.3) 14.9 207.2 603.0
Interest expense
and other
financing costs (9.7) (9.3) (34.2) (44.1)
Interest income 0.1 0.1 0.3 0.4
Gain (loss) on
derivatives, net 14.5 (115.9) 185.6 57.1
Loss on
extinguishment of
debt -- -- -- (26.1)
Other income
(expense), net (0.1) -- (0.2) 0.1
-------- -------- -------- --------
Income (loss)
before income tax
expense (108.5) (110.2) 358.7 590.4
Income tax expense -- -- -- --
-------- -------- -------- --------
Net income
(loss) $(108.5) $(110.2) $ 358.7 $ 590.4
======= ======= ======= =======

Net income
subsequent to
initial public
offering (January
23, 2013 -
December 31,
2013) $ 512.6
Net income (loss)
per common unit -
basic(1) $ (0.73) $ (0.75) $ 2.43 $ 3.47
Net income (loss)
per common unit -
diluted(1) $ (0.73) $ (0.75) $ 2.43 $ 3.47

Adjusted EBITDA* $ 104.6 $ 117.5 $ 621.6 $ 712.0
Available cash for
distribution* $ 54.7 $ 67.4 $ 421.5 $ 546.0

Weighted average,
number of common
units outstanding
(in thousands):
Basic 147,600 147,600 147,600 147,600
Diluted 147,600 147,600 147,600 147,600


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