Financial Data and Key Metrics Changes - The company reported a consolidated net loss of $90 million for the second quarter of 2025, with a loss per share of $1.14 and an EBITDA loss of $24 million [5][11] - Adjusted EBITDA for the quarter was $99 million, with an adjusted loss per share of $0.23 [11] - The negative mark to market impact on the RFS obligation was $89 million, and the unfavorable inventory valuation impact was $32 million [11] Business Line Data and Key Metrics Changes - In the Petroleum segment, total throughput was approximately 172,000 barrels per day, with a light product yield of 99% on crude oil processed [5] - Adjusted EBITDA for the Petroleum segment was $38 million, driven by increased Group 3 crack spreads, offset by higher RIN prices and lower throughput volumes [11] - The Fertilizer segment achieved an adjusted EBITDA of $67 million, supported by higher UAN and ammonia sales pricing and volumes [11] Market Data and Key Metrics Changes - Group 3 2-1-1 benchmark cracks averaged $24.02 per barrel for the second quarter, compared to $18.83 per barrel in the same period last year [6] - Average RIN prices for 2025 were approximately $1.11, an increase of over 70% from the prior year [6] - Nitrogen fertilizer prices for 2025 were higher for both UAN and ammonia compared to 2024 [10] Company Strategy and Development Direction - The company plans to focus on improving capture rates, reducing costs, and growing the business profitably [25] - The alkylation project at Wynnewood is expected to enhance the ability to produce premium gasoline, with completion anticipated in 2027 [19] - The company is cautiously optimistic about the refining sector's near and medium-term outlook, given low refined product inventories and steady demand [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the refining market, citing low inventories and steady demand for refined products [17][20] - The company is awaiting final regulations from the IRS regarding PTC benefits, which could positively impact the Renewables segment [9][21] - Management indicated that the energy transition is evolving, with a belief that gas and diesel will remain essential fuels for the foreseeable future [48] Other Important Information - The company ended the quarter with a consolidated cash balance of $596 million and total liquidity of approximately $759 million [15] - Significant cash uses included $189 million for capital and turnaround spending and a $70 million prepayment on the term loan [13] Q&A Session Summary Question: Impact of excess inventory on financials - Management acknowledged that excess inventory during turnaround seasons negatively impacted financial performance, estimating a 7% to 9% decline in capture rates due to timing of product sales [31][35] Question: 2026 CapEx and turnaround outlook - Management indicated that there are no major turnarounds planned for 2026, and guidance on capital spending will be provided later in the year [36] Question: Strategic focus for new leadership - Management emphasized the need for diversification and the potential for future acquisitions to mitigate reliance on a single market [40] Question: Dividend reinstatement considerations - Management expressed a desire to return to dividend payments as soon as possible, with ongoing discussions at the board level [48][51] Question: Small refinery exemptions outlook - Management discussed the ongoing challenges with small refinery exemptions and the potential for legal action if necessary, emphasizing the importance of these exemptions for rural refineries [54][56]

Company Performance - CVR Energy reported a quarterly loss of $0.23 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, and compared to earnings of $0.09 per share a year ago, indicating an earnings surprise of -187.50% [1] - The company posted revenues of $1.76 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 7.61%, and down from $1.97 billion in the same quarter last year [2] - Over the last four quarters, CVR has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - CVR shares have increased approximately 55.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $2.04 billion, while for the current fiscal year, the estimate is -$0.53 on revenues of $7.59 billion [7] Industry Context - The Oil and Gas - Refining and Marketing industry, to which CVR belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CVR's stock performance [5]

[Overall Performance and Corporate Developments](index=1&type=section&id=CVR%20Energy%20Reports%20Second%20Quarter%202025%20Results%2C%20Announces%20Leadership%20Transition%20Plans) CVR Energy reported a significant Q2 2025 net loss driven by RFS obligations and refining issues, while its nitrogen fertilizer segment performed well and leadership transition plans were announced [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) CVR Energy reported a significant Q2 2025 net loss of **$114 million** due to RFS obligations and refining issues, despite strong nitrogen fertilizer performance and debt prepayment | Financial Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income Attributable to CVR (million) | ($114) | $21 | | Diluted (Loss) Earnings per Share ($) | ($1.14) | $0.21 | | Adjusted (Loss) per Diluted Share ($) | ($0.23) | $0.09 | | EBITDA (Loss) (million) | ($24) | $103 | | Adjusted EBITDA (million) | $99 | $87 | - The refining business results were negatively impacted by an **$89 million** unfavorable mark-to-market on its Renewable Fuel Standard (RFS) obligation and reduced throughput volumes following the Coffeyville refinery turnaround[4](index=4&type=chunk) - The company prepaid **$70 million** of its Term Loan principal in June 2025 and an additional **$20 million** in July 2025[7](index=7&type=chunk)[22](index=22&type=chunk) - CVR Partners, the nitrogen fertilizer business, achieved a solid **91%** combined ammonia production rate and declared a cash distribution of **$3.89** per common unit[5](index=5&type=chunk)[7](index=7&type=chunk) [Leadership Transition and Board Changes](index=1&type=section&id=Leadership%20Transition%20and%20Board%20Changes) CVR Energy announced CEO Dave Lamp's retirement by end of 2025, with Mark A. Pytosh as successor, alongside a new board appointment - Dave Lamp will retire as President and CEO, effective **December 31, 2025**, but is expected to remain on the Board of Directors[5](index=5&type=chunk) - Mark A. Pytosh is expected to assume the role of President, CEO, and Director of CVR Energy on **January 1, 2026**, while continuing in his current roles at CVR Partners[5](index=5&type=chunk)[6](index=6&type=chunk) - Effective **August 1, 2025**, Brett Icahn was appointed as a director, increasing the Board size to **nine members**[8](index=8&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) This section provides a detailed analysis of the financial and operational performance across the Petroleum, Renewables, and Nitrogen Fertilizer segments [Petroleum Segment](index=3&type=section&id=Petroleum%20Segment) The Petroleum Segment reported a **$137 million** net loss in Q2 2025, primarily due to RFS mark-to-market and inventory valuation impacts, despite a slight adjusted refining margin increase | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income (million) | ($137) | $18 | | EBITDA (Loss) (million) | ($84) | $56 | | Adjusted EBITDA (million) | $38 | $37 | - Combined total throughput decreased to approximately **172,000 bpd** from **186,000 bpd** in Q2 2024, primarily due to processing intermediate inventories after the Coffeyville refinery turnaround[10](index=10&type=chunk) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Refining Margin (million) | $35 | $185 | | Refining Margin per barrel ($) | $2.21 | $10.94 | | Adjusted Refining Margin per barrel ($) | $9.95 | $9.81 | - The Q2 2025 refining margin included an **$89 million** unfavorable mark-to-market impact on the RFS obligation and a **$31 million** unfavorable inventory valuation impact[11](index=11&type=chunk) [Renewables Segment](index=3&type=section&id=Renewables%20Segment) The Renewables Segment maintained an **$11 million** net loss in Q2 2025, as increased throughput was offset by declining margins and the loss of the Blenders Tax Credit | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss (million) | ($11) | ($11) | | EBITDA Loss (million) | ($5) | ($5) | | Adjusted EBITDA Loss (million) | ($4) | ($2) | - Total vegetable oil throughput increased to approximately **155,000 gallons per day (gpd)** from **127,000 gpd** in Q2 2024[14](index=14&type=chunk) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Renewables Margin (million) | $5 | $5 | | Renewables Margin per gallon ($) | $0.38 | $0.43 | [Nitrogen Fertilizer Segment](index=3&type=section&id=Nitrogen%20Fertilizer%20Segment) The Nitrogen Fertilizer Segment showed strong Q2 2025 performance, with net income rising to **$39 million** driven by higher realized prices despite slightly lower production volumes | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (million) | $39 | $26 | | EBITDA (million) | $67 | $54 | | Net Sales (million) | $169 | $133 | - Production volumes decreased slightly, with ammonia production at **197,000 tons** (vs. **221,000 tons** in Q2 2024) and UAN production at **321,000 tons** (vs. **337,000 tons** in Q2 2024)[17](index=17&type=chunk)[18](index=18&type=chunk) | Product | Q2 2025 Realized Price | Q2 2024 Realized Price | YoY Change | | :--- | :--- | :--- | :--- | | Ammonia ($ per ton) | $593 | $520 | +14% | | UAN ($ per ton) | $317 | $268 | +18% | [Financial Position and Outlook](index=4&type=section&id=Financial%20Position%20and%20Outlook) This section details the company's financial position, including cash, debt, and dividend, along with the Q3 2025 operational outlook [Cash, Debt and Dividend](index=4&type=section&id=Cash%2C%20Debt%20and%20Dividend) CVR Energy's consolidated cash decreased to **$596 million** by Q2 2025, despite **$90 million** in term loan prepayments, with no Q2 cash dividend declared - Consolidated cash and cash equivalents were **$596 million** at June 30, 2025, down from **$987 million** at December 31, 2024[21](index=21&type=chunk)[45](index=45&type=chunk) - The company prepaid **$70 million** of its Term Loan in June and an additional **$20 million** in July 2025[22](index=22&type=chunk) - CVR Energy will not pay a cash dividend for the second quarter of 2025[23](index=23&type=chunk) [Q3 2025 Outlook](index=16&type=section&id=Q3%202025%20Outlook) CVR Energy projects increased Q3 2025 petroleum throughput with **92-97%** crude utilization, alongside guidance for operating expenses and capital expenditures across segments | Q3 2025 Outlook | Low | High | | :--- | :--- | :--- | | **Petroleum** | | | | Total throughput (bpd) | 200,000 | 215,000 | | Crude utilization (%) | 92% | 97% | | Direct operating expenses ($M) | $105 | $115 | | **Renewables** | | | | Total throughput (M gallons) | 16 | 20 | | Renewable utilization (%) | 70% | 85% | | Direct operating expenses ($M) | $8 | $10 | | **Nitrogen Fertilizer** | | | | Ammonia utilization rate (%) | 93% | 98% | | Direct operating expenses ($M) | $60 | $65 | | **Total Capital Expenditures ($M)** | $47 | $60 | [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section provides key consolidated financial statements, including the statement of operations, balance sheet, and cash flow data [Consolidated Statement of Operations](index=10&type=section&id=Consolidated%20Statement%20of%20Operations) CVR Energy reported a Q2 2025 consolidated net loss of **$90 million** on **$1.76 billion** net sales, a significant decline from the prior year's net income | (in millions, except per share) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales (million) | $1,761 | $1,967 | | Operating (loss) income (million) | ($103) | $27 | | Net (loss) income (million) | ($90) | $38 | | Net (loss) income attributable to CVR (million) | ($114) | $21 | | Diluted (loss) earnings per share ($) | ($1.14) | $0.21 | [Selected Consolidated Balance Sheet Data](index=10&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Data) As of June 30, 2025, the balance sheet shows **$596 million** cash, **$3.98 billion** total assets, **$1.86 billion** total debt, and **$466 million** stockholders' equity | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents (million) | $596 | $987 | | Total assets (million) | $3,984 | $4,263 | | Total debt and finance lease obligations (million) | $1,861 | $1,919 | | Total CVR stockholders' equity (million) | $466 | $703 | [Selected Consolidated Cash Flow Data](index=11&type=section&id=Selected%20Consolidated%20Cash%20Flow%20Data) Q2 2025 saw **$176 million** net cash used in operating activities and negative **$12 million** free cash flow, a significant decline from the prior year | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities (million) | ($176) | $81 | | Net cash used in investing activities (million) | ($185) | ($74) | | Net cash used in financing activities (million) | ($90) | ($65) | | Free cash flow (million) | ($12) | $7 | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of GAAP measures to non-GAAP metrics, including EBITDA, Adjusted EPS, and segment-specific adjustments [Reconciliation of Net Income to EBITDA](index=16&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA) The Q2 2025 GAAP net loss of **$90 million** was reconciled to an Adjusted EBITDA of **$99 million**, primarily due to RFS liability and inventory valuation adjustments | (in millions) | Q2 2025 | | :--- | :--- | | Net (loss) income (million) | ($90) | | Interest, Tax, D&A (million) | +66 | | **EBITDA (million)** | **($24)** | | Revaluation of RFS liability (million) | +$89 | | Unrealized loss on derivatives (million) | +$2 | | Inventory valuation impacts (million) | +$32 | | **Adjusted EBITDA (million)** | **$99** | [Reconciliation of EPS to Adjusted EPS](index=17&type=section&id=Reconciliation%20of%20EPS%20to%20Adjusted%20EPS) The Q2 2025 GAAP diluted loss per share of **$1.14** was adjusted to **$0.23**, primarily due to a **$0.65** per share unfavorable RFS liability revaluation | (per share) | Q2 2025 | | :--- | :--- | | Basic and diluted (loss) earnings per share ($) | ($1.14) | | Revaluation of RFS liability ($) | +$0.65 | | Unrealized loss on derivatives ($) | +$0.02 | | Inventory valuation impacts ($) | +$0.24 | | **Adjusted (loss) earnings per share ($)** | **($0.23)** | [Segment-Specific Reconciliations](index=17&type=section&id=Segment-Specific%20Reconciliations) This section details non-GAAP reconciliations for each segment, including Petroleum's **$137 million** net loss to **$38 million** Adjusted EBITDA, and Renewables' **$11 million** net loss to **$4 million** Adjusted EBITDA loss - Petroleum Segment: Reconciled a **$137M** net loss to **$38M** in Adjusted EBITDA for Q2 2025, primarily by adding back an **$89M** RFS revaluation and a **$31M** inventory valuation impact[69](index=69&type=chunk) - Renewables Segment: Reconciled an **$11M** net loss to a **$4M** Adjusted EBITDA loss for Q2 2025, with a minor adjustment for inventory valuation[71](index=71&type=chunk) - Nitrogen Fertilizer Segment: Reconciled a **$39M** net income to **$67M** in EBITDA for Q2 2025. Adjusted EBITDA was the same as EBITDA, indicating no special adjustments for the period[73](index=73&type=chunk)

Core Points - CVR Energy reported a net loss of $114 million for Q2 2025, a significant decline from a net income of $21 million in Q2 2024, resulting in a loss per diluted share of $1.14 compared to earnings of $0.21 per share in the previous year [1][8] - The company's adjusted loss for Q2 2025 was 23 cents per diluted share, contrasting with adjusted earnings of 9 cents per diluted share in Q2 2024 [1][8] - EBITDA loss for Q2 2025 was $24 million, down from an EBITDA of $103 million in Q2 2024, while adjusted EBITDA increased to $99 million from $87 million year-over-year [1][8] Financial Performance - The Petroleum Segment experienced a net loss of $137 million and an EBITDA loss of $84 million in Q2 2025, compared to a net income of $18 million and EBITDA of $56 million in Q2 2024 [6][8] - Total throughput for Q2 2025 was approximately 172,000 barrels per day, down from 186,000 barrels per day in Q2 2024, primarily due to processing intermediate inventories [7][8] - Refining margin for Q2 2025 was $35 million, or $2.21 per total throughput barrel, a sharp decline from $185 million, or $10.94 per barrel, in the same period of 2024 [9][50] Segment Performance - The Renewables Segment reported a net loss of $11 million and an EBITDA loss of $5 million for Q2 2025, consistent with the previous year's performance [11][13] - The Nitrogen Fertilizer Segment achieved net income of $39 million and EBITDA of $67 million on net sales of $169 million for Q2 2025, compared to net income of $26 million and EBITDA of $54 million on net sales of $133 million in Q2 2024 [14][15] Leadership Changes - Mark A. Pytosh is set to assume the role of President and CEO of CVR Energy on January 1, 2026, following Dave Lamp's retirement [3][5] - Brett Icahn was appointed as a director effective August 1, 2025, increasing the Board size to nine members [5][8] Cash and Debt Management - Consolidated cash and cash equivalents decreased to $596 million as of June 30, 2025, down from $987 million at the end of 2024 [18][43] - Total debt and finance lease obligations were reported at $1.9 billion as of June 30, 2025, including $570 million held by the Nitrogen Fertilizer Segment [18][43] - The company prepaid $70 million and $20 million in principal of the Term Loan in June and July 2025, respectively, recognizing a $1 million loss on extinguishment of debt [19][20]

Group 1 - CVR Energy, Inc. plans to release its second quarter 2025 earnings results on July 30, after the close of trading on the New York Stock Exchange [1] - A teleconference call to discuss the earnings results will be held on July 31 at 1 p.m. Eastern [1] - The teleconference will be accessible via webcast and archived for 14 days [2] Group 2 - CVR Energy is a diversified holding company engaged in renewables, petroleum refining, marketing, and nitrogen fertilizer manufacturing through its interest in CVR Partners, LP [4] - The company owns 37 percent of the common units of CVR Partners, LP [4]

Company Overview - CVR Energy was founded in 2006 and has over 1,550 employees[14] - The company focuses on petroleum refining, nitrogen fertilizer manufacturing, renewable biofuels production, energy transition, and lower carbon emissions[14] - CVR Energy owns the general partner and 37% of the common units of CVR Partners, LP (NYSE: UAN)[17] Petroleum Segment - The petroleum segment has a total nameplate capacity of 206,500 bpd across two refineries[16] - The refineries achieved a 92% crude oil capacity utilization for the twelve months ended December 31, 2023[15, 32] - Approximately 20% of refined product sales were across CVR's refinery racks[36] - Approximately 33% of product sales were across Oneok and NuStar racks[36] - Approximately 47% of product sales were to the bulk market[36] - Total Estimated 2024 Petroleum Segment and Other Capex of $181 million - $202 million[75] - 2024 Turnaround Spending of $60 million - $70 million[76] Renewable Biofuels - Wynnewood renewable diesel unit (RDU) completed in April 2022 with a capacity of 100 million gallons per year[20, 66] - The company plans to retain the flexibility to return the unit to hydrocarbon processing and/or install another reactor on the diesel hydrotreater to regain lost hydrocarbon processing capacity if dictated by the margin environment and otherwise approved[68] Nitrogen Fertilizer Segment - CVR Energy owns 37% of the common units of CVR Partners, LP (NYSE: UAN)[17] - The company estimates planted corn acres to be 91 million in 2024, compared to 946 million in 2023[97] - 2024 Total Capex budget of $44 million - $48 million[113]

Group 1 - The oil market continues its strong performance, with WTI crude oil futures rising 2.8% to $63.67 per barrel and Brent crude oil futures increasing 2.6% to $66.63 per barrel, marking the largest four-day gain since October of the previous year [1] - The positive market sentiment is driven by a breakthrough in US-China trade negotiations, where both parties agreed to suspend new tariffs for 90 days, alleviating concerns over weak energy demand [1] - The US Labor Department reported a narrowing year-on-year increase in the Consumer Price Index (CPI) to 2.3%, the lowest in four years, which has led institutions like JPMorgan and Barclays to lower recession forecasts for the US economy [1] Group 2 - Geopolitical factors are also providing support, with the Trump administration adopting a hardline stance towards Iran, raising concerns about the stability of Middle Eastern supply [2] - Demand signals are turning positive, as a JPMorgan report indicates that despite uncertainties in crude oil demand, the refined oil market remains strong, with gasoline and diesel prices stable [2] - The refining sector is experiencing a bullish response in the secondary market, with companies like PBF Energy rising 10.1% and Delek US increasing by 6.1% [2]

Financial Data and Key Metrics Changes - For the first quarter of 2025, the company reported a consolidated net loss of $105 million and a loss per share of $1.22, with EBITDA also reflecting a loss of $61 million [5][13] - Adjusted EBITDA for the quarter was $24 million, while adjusted loss per share was $0.58 [13] - The negative mark to market impact on outstanding RFS obligations was $112 million, with a favorable inventory valuation impact of $24 million [13] Business Line Data and Key Metrics Changes - In the Petroleum segment, total throughput for Q1 2025 was approximately 125,000 barrels per day, with a light product yield of 95% [5][6] - Adjusted EBITDA for the Petroleum segment was a loss of $30 million, driven by reduced throughput volumes due to planned and unplanned downtime [13] - The Renewables segment achieved an adjusted EBITDA of $3 million, an improvement from a negative $5 million in the prior year, primarily due to higher throughput volumes and increased RIN prices [11][14] - The Fertilizer segment reported an adjusted EBITDA of $53 million, supported by higher UAN sales volumes and ammonia sales prices [14] Market Data and Key Metrics Changes - Group 3 2-1-1 benchmark cracks averaged $17.65 per barrel in Q1 2025, down from $19.55 per barrel in the same period last year [6] - Average RIN prices were approximately $0.84, an increase of over 25% from the previous year [6] - Days of gasoline supply were reported to be 12% below the five-year average, while diesel supply was 17% below [19] Company Strategy and Development Direction - The company plans to ramp up refinery operations to full rates over the second quarter of 2025, with no additional turnarounds planned until 2027 [6][17] - The company is focusing on reducing debt and restoring balance sheet leverage ratios while looking for ways to improve capture and reduce costs [25] - The company is optimistic about the potential for increased jet fuel production, which is not subject to RVO, thereby reducing annual RIN obligations [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that refining market conditions began to improve in Q1 2025, driven by a heavy spring maintenance season and refinery closures [18] - The company expressed confidence in recovering strong margins post-turnaround, despite challenges faced during the Coffeyville turnaround [46][47] - Management highlighted the importance of government support for renewable businesses, indicating a cautious approach to further investments in renewables without assurance of stable credits [56] Other Important Information - The company ended Q1 2025 with a consolidated cash balance of $695 million and total liquidity of approximately $894 million [16] - Significant cash uses included $94 million for capital and turnaround spending, and $113 million for working capital, primarily associated with inventory buildup during the turnaround [16] Q&A Session Summary Question: Understanding refining macro and demand resilience - Management indicated that days of supply have shrunk, suggesting a correcting supply-demand balance, with expectations for summer demand to influence gasoline and diesel markets [28] Question: RVO and SRE implications - Management believes decoupling D4 from D6 is important and criticized the government's handling of RFS, emphasizing the need for lower RIN prices to benefit consumers [31][32][33] Question: Renewable diesel EBITDA expectations - Management noted that RIN prices and feedstock costs are favorable, but emphasized the need for clarity on PTC rules before making further investments [36][37] Question: Jet expansion at Coffeyville - Management expressed confidence in securing contracts with major airlines as existing contracts expire, indicating a positive outlook for jet fuel demand [52] Question: Insider activity at the company - Management refrained from commenting on insider activity, suggesting inquiries should be directed to the individuals involved [80]

[PART I. Financial Information](index=6&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited Q1 2025 consolidated financial statements, reporting a **$105 million net loss** driven by the Petroleum segment [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$4.251 billion**, with cash down to **$695 million**, while total equity declined to **$771 million** Condensed Consolidated Balance Sheet Highlights (unaudited) | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $695 | $987 | | Total current assets | $1,649 | $1,824 | | Total assets | $4,251 | $4,263 | | **Liabilities and Equity** | | | | Total current liabilities | $1,254 | $1,098 | | Total long-term liabilities | $2,226 | $2,277 | | Total equity | $771 | $888 | | Total liabilities and equity | $4,251 | $4,263 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 saw a **$105 million net loss** and **$131 million operating loss**, a significant reversal from Q1 2024's net income Q1 2025 vs. Q1 2024 Statement of Operations (unaudited) | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $1,646 | $1,863 | | Operating (loss) income | $(131) | $123 | | Net (loss) income | $(105) | $90 | | Net (loss) income attributable to CVR Energy stockholders | $(123) | $82 | | Basic and diluted (loss) earnings per share | $(1.22) | $0.81 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow shifted to a **$195 million use** in Q1 2025, leading to a **$292 million decrease** in cash and equivalents Q1 2025 vs. Q1 2024 Cash Flow Summary (unaudited) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(195) | $177 | | Net cash used in investing activities | $(82) | $(55) | | Net cash used in financing activities | $(15) | $(664) | | Net decrease in cash, cash equivalents | $(292) | $(542) | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment re-segmentation, a **$438 million RFS obligation increase**, and performance data for Petroleum, Renewables, and Nitrogen Fertilizer segments - The company is a diversified holding company with three reportable segments: Petroleum, Renewables, and Nitrogen Fertilizer. As of March 31, 2025, IEP owned approximately **68%** of the company's common stock, which increased to **70%** in April 2025[29](index=29&type=chunk) - The company revised its reportable segments to create a new Renewables segment, reflecting the growing prominence of this business. Prior period information has been retrospectively adjusted[37](index=37&type=chunk) - The accrued Renewable Fuel Standard (RFS) obligation increased to **$438 million** as of March 31, 2025, from **$323 million** at December 31, 2024[47](index=47&type=chunk)[74](index=74&type=chunk) Segment Operating (Loss) Income - Q1 2025 vs Q1 2024 (in millions) | Segment | Q1 2025 Operating (Loss) Income | Q1 2024 Operating Income (Loss) | | :--- | :--- | :--- | | Petroleum | $(161) | $118 | | Renewables | $0 | $(10) | | Nitrogen Fertilizer | $35 | $20 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **$105 million net loss** from Petroleum segment challenges, improved Renewables, and strong Nitrogen Fertilizer results, with **$1.1 billion** liquidity and suspended dividends Consolidated Financial Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating (Loss) Income | $(131) | $123 | | Net (Loss) Income | $(105) | $90 | | Adjusted EBITDA | $24 | $99 | - The company's liquidity position is considered sufficient for the next 12 months, despite challenges. Management has implemented measures including deferring new growth capital spending and reducing 2025 capital expenditures to preserve cash[225](index=225&type=chunk) - The Board of Directors elected to temporarily suspend cash dividend payments. No dividends were declared for Q1 2025[225](index=225&type=chunk)[243](index=243&type=chunk) [Industry Factors and Market Indicators](index=26&type=section&id=Industry%20Factors%20and%20Market%20Indicators) Industry factors include weak Petroleum crack spreads, Renewables' reliance on volatile government credits, and strong Nitrogen Fertilizer demand from increased corn planting - **Petroleum:** Crack spreads are characterized as at or slightly below mid-cycle levels due to oversupplied refined product markets and weak demand. RFS compliance costs are expected to remain significant[104](index=104&type=chunk)[107](index=107&type=chunk) - **Renewables:** Profitability is highly dependent on government grants and credits. The expiration of the **$1 per gallon** Blenders' Tax Credit (BTC) on December 31, 2024, has caused additional volatility in the market[125](index=125&type=chunk)[127](index=127&type=chunk) - **Nitrogen Fertilizer:** The USDA estimates farmers will plant **95.3 million acres** of corn in spring 2025, a **5% increase** from 2024, which is expected to support nitrogen fertilizer demand[147](index=147&type=chunk) [Results of Operations - Segment Analysis](index=42&type=section&id=Results%20of%20Operations%20-%20Segment%20Analysis) Petroleum reported a **$161 million operating loss** due to turnaround, Renewables reached breakeven, and Nitrogen Fertilizer operating income grew to **$35 million** Petroleum Segment Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Loss/Income | $(161)M | $118M | | Total Throughput (bpd) | 120,377 | 195,792 | | Refining Margin/bbl | $(0.42) | $16.29 | Renewables Segment Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Income/Loss | $0M | $(10)M | | Throughput (gal/day) | 155,943 | 75,657 | | Renewables Margin/gal | $1.13 | $0.65 | Nitrogen Fertilizer Segment Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Income | $35M | $20M | | Ammonia Utilization | 101% | 90% | | Pet Coke Cost/ton | $42.43 | $75.71 | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity is **$1.1 billion**, impacted by a **$210 million refinery turnaround**, leading to dividend suspension and deferred capital spending - Total liquidity was approximately **$1.1 billion** as of March 31, 2025, consisting of **$695 million** in cash and **$371 million** in available credit[230](index=230&type=chunk) - The Coffeyville Refinery turnaround was completed in late April 2025 at a total cost of approximately **$210 million**, which negatively impacted operating cash flow[225](index=225&type=chunk)[239](index=239&type=chunk) - Net cash used in operating activities was **$195 million** for Q1 2025, a **$372 million** negative swing from the **$177 million** provided by operating activities in Q1 2024[245](index=245&type=chunk)[246](index=246&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risks were reported for Q1 2025 compared to the 2024 Form 10-K disclosures - There have been no material changes to market risks as of and for the three months ended March 31, 2025, compared to those discussed in the 2024 Form 10-K[250](index=250&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of March 31, 2025[251](index=251&type=chunk) - There were no material changes in internal controls over financial reporting during the fiscal quarter ended March 31, 2025[252](index=252&type=chunk) [PART II. Other Information](index=60&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings include litigation over insurance coverage, EPA challenges to RFS exemptions, and a guaranty dispute with Exxon Mobil Corporation - The company is involved in an appeal regarding insurance coverage for a 2022 settlement related to former unitholders of CVR Refining, LP[75](index=75&type=chunk) - The company is engaged in litigation with the EPA over the denial of small refinery hardship exemptions under the Renewable Fuel Standard (RFS), with a case heard by the Supreme Court in March 2025[76](index=76&type=chunk) - In April 2025, a subsidiary filed a complaint disputing the validity of an alleged 1993 guaranty claimed by Exxon Mobil Corporation related to historical well operations in Louisiana[77](index=77&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported compared to the 2024 Form 10-K disclosures - There have been no material changes from the risk factors previously disclosed in Part I, Item 1A of the 2024 Form 10-K[255](index=255&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) The Compensation Committee adopted 2025 bonus plans, and no Rule 10b5-1 trading arrangements were adopted or terminated by officers or directors - The Compensation Committee adopted the CVR Energy, Inc. and Subsidiaries 2025 Performance Based Bonus Plan for both Corporate and Refining divisions on April 29, 2025[256](index=256&type=chunk) - During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement[257](index=257&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) Exhibits include CEO and CFO certifications and financial statements presented in Inline XBRL format - The report includes required certifications from the President and Chief Executive Officer, and the Executive Vice President, Chief Financial Officer[259](index=259&type=chunk) - Financial information is provided in Inline XBRL format, including the condensed consolidated balance sheets, statements of operations, equity, cash flows, and notes[259](index=259&type=chunk)

Financial Data and Key Metrics Changes - The company reported a consolidated net loss of $105 million for Q1 2025, with a loss per share of $1.22 and an EBITDA loss of $61 million [6][15] - Adjusted EBITDA for the quarter was $24 million, with an adjusted loss per share of $0.58 [15] - The negative mark to market impact on outstanding RFS obligations was $112 million, while there was a favorable inventory valuation impact of $24 million [15] Business Line Data and Key Metrics Changes - In the Petroleum segment, total throughput was approximately 125,000 barrels per day, with a light product yield of 95% [6] - Adjusted EBITDA for the Petroleum segment was a loss of $30 million, driven by reduced throughput volumes and lower product cracks [15] - The Renewables segment achieved an adjusted EBITDA of $3 million, an improvement from a negative $5 million in the prior year [15] - The Fertilizer segment reported an adjusted EBITDA of $53 million, driven by higher UAN sales volumes and ammonia sales prices [15] Market Data and Key Metrics Changes - Group 3 2-1-1 benchmark cracks averaged $17.65 per barrel in Q1 2025, down from $19.55 per barrel in the same period last year [8] - Average RIN prices were approximately $0.84, an increase of over 25% from the previous year [8] - Nitrogen fertilizer prices were higher for ammonia and slightly lower for UAN compared to Q1 2024 [13] Company Strategy and Development Direction - The company plans no additional turnarounds in the Refining segment for 2025 and 2026, with the next planned turnaround at Wynnewood scheduled for 2027 [8] - The company is focusing on increasing distillate yield and jet fuel production, with projects underway to enhance capacity [24] - The company aims to reduce debt and restore balance sheet leverage ratios while looking for ways to improve capture and reduce costs [28] Management's Comments on Operating Environment and Future Outlook - Management noted that refining market conditions began to improve due to a heavy spring maintenance season and refinery closures [20] - The company expressed optimism about the demand for refined products, despite potential recession concerns [31] - Management highlighted the importance of government support for renewable businesses and the need for clarity on credits before making further investments [60] Other Important Information - The company ended Q1 2025 with a consolidated cash balance of $695 million and total liquidity of approximately $894 million [18] - Significant cash uses included $94 million for capital and turnaround spending and $113 million for working capital [18] Q&A Session Summary Question: Understanding refining macro and demand - Management indicated that days of supply have shrunk, suggesting a correction in the supply-demand balance, with expectations for improved gasoline demand in the summer [31] Question: RVO and SRE implications - Management believes decoupling D4 and D6 is important and criticized the government's handling of the RFS, emphasizing the need for lower RIN prices to benefit consumers [34][36] Question: Renewable diesel EBITDA and future expectations - Management noted that RIN prices and feedstock costs are critical for maintaining positive EBITDA in the renewable segment, with ongoing uncertainty regarding the PTC [40][41] Question: Industry consolidation and economies of scale - Management agreed that economies of scale are essential for survival and acknowledged potential for further consolidation in the refining sector [45] Question: Update on Coffeyville turnaround - Management acknowledged challenges during the Coffeyville turnaround but expressed confidence in recovering strong margins moving forward [52] Question: Jet fuel expansion and customer contracts - Management is optimistic about securing contracts with major airlines as existing contracts come up for renewal [57] Question: Assurance for renewable investments - Management emphasized the need for stable government support and clarity on credits before committing to new renewable projects [60]