CVR Energy(US:CVI)2020-05-07 20:58Financial Performance - Net sales for the three months ended March 31, 2020, were $1,130 million, a decrease of 24% compared to $1,486 million for the same period in 2019[19]. - The company reported a net loss of $101 million for the three months ended March 31, 2020, compared to a net income of $102 million for the same period in 2019[19]. - Basic and diluted loss per share was $(0.87) for the three months ended March 31, 2020, compared to earnings of $1.00 per share in the same period of the previous year[19]. - The Petroleum Segment reported an operating loss of $127 million for Q1 2020, compared to an operating income of $156 million in Q1 2019[101]. - The Nitrogen Fertilizer Segment's net sales decreased to $75 million in Q1 2020 from $92 million in Q1 2019, reflecting a decline of approximately 18%[101]. - Free cash flow for the three months ended March 31, 2020, was $(115) million, compared to $186 million in the same period of 2019[205]. - Petroleum net loss for the three months ended March 31, 2020, was $(130) million, compared to a net income of $149 million in the same period of 2019[205]. Assets and Liabilities - Total current assets increased to $1,396 million as of March 31, 2020, up from $1,274 million at December 31, 2019, representing a growth of 9.6%[18]. - Total liabilities increased to $2,135 million as of March 31, 2020, compared to $1,641 million at December 31, 2019, reflecting a rise of 30%[18]. - The company's accumulated deficit grew to $(281) million as of March 31, 2020, from $(113) million at December 31, 2019[21]. - Total equity decreased to $1,486 million as of March 31, 2020, down from $1,668 million at December 31, 2019[18]. - Cash and cash equivalents increased to $805 million as of March 31, 2020, compared to $652 million at December 31, 2019, marking a 23.5% increase[18]. Capital Expenditures and Investments - Capital expenditures amounted to $35 million, up from $29 million in the previous year, indicating increased investment in operational capabilities[23]. - The company invested approximately $140 million in marketable securities of Delek US Holdings under an agency arrangement with Icahn Enterprises[15]. - The company plans to defer the majority of growth capital spending and reduce maintenance capital expenditures for the remainder of 2020[211]. Revenue and Sales - Revenue from product sales for the Petroleum Segment was $1,057 million, a decrease from $1,397 million in the same period last year, representing a decline of approximately 24%[59]. - The company reported a total revenue from product sales of $1,093 million for the three months ended March 31, 2020, compared to $1,462 million in the same period last year, a decrease of approximately 25.2%[59]. - The Petroleum Segment's revenue from crude oil sales was $37 million, down from $23 million in the same period last year, indicating an increase of 60.87%[59]. Debt and Financing - The company raised $1 billion through the issuance of senior secured notes, with net cash provided by financing activities totaling $407 million[23]. - The company issued $600 million in senior unsecured notes due 2025 and $400 million due 2028 to enhance liquidity[215]. - The company redeemed all outstanding 2022 Notes for approximately $505 million, resulting in an $8 million loss on extinguishment of debt in Q1 2020[52]. - Long-term debt and finance lease obligations rose to $1,686 million as of March 31, 2020, compared to $1,190 million at December 31, 2019, an increase of 41.7%[18]. Operational Performance - The total throughput for the Petroleum Segment decreased to 156,518 bpd for the three months ended March 31, 2020, down from 212,807 bpd for the same period in 2019[168]. - Direct operating expenses increased to $5.87 per barrel from $4.74 per barrel, largely due to decreased throughput volumes during a planned turnaround at the Coffeyville Refinery[180]. - The refining margin decreased to $22 million, or $1.52 per throughput barrel, for the three months ended March 31, 2020, down from $317 million, or $16.55 per throughput barrel, for the same period in 2019[176]. Shareholder Returns - Dividends declared per share increased to $0.80 for the three months ended March 31, 2020, compared to $0.75 for the same period in 2019[19]. - CVR Energy paid $57 million in dividends to Icahn Enterprises for the three months ended March 31, 2020, compared to $54 million in the same period of 2019[15]. - The company announced a 50% reduction in its cash dividend for Q1 2020 to conserve cash amid the economic uncertainty caused by the COVID-19 pandemic[211]. Market Conditions and Future Outlook - The company is currently evaluating the impacts of the COVID-19 pandemic on its contractual arrangements but has not yet experienced a material financial impact[89]. - The company anticipates that the ongoing COVID-19 pandemic will lead to significant volatility in the demand for refined products and could negatively impact future operating results[126]. - Long-term fundamentals for the U.S. nitrogen fertilizer industry remain intact, driven by factors such as increasing global population and decreasing arable land per capita[144].