CVR Energy(US:CVI)2025-04-29 20:20PART I. Financial Information Financial Statements This section presents unaudited Q1 2025 consolidated financial statements, reporting a $105 million net loss driven by the Petroleum segment Condensed Consolidated Balance Sheets 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 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 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 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 202529 - 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 adjusted37 - The accrued Renewable Fuel Standard (RFS) obligation increased to $438 million as of March 31, 2025, from $323 million at December 31, 20244774 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 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 cash225 - The Board of Directors elected to temporarily suspend cash dividend payments. No dividends were declared for Q1 2025225243 Industry Factors and Market Indicators 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 significant104107 - 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 market125127 - 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 demand147 Results of Operations - Segment Analysis 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 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 credit230 - The Coffeyville Refinery turnaround was completed in late April 2025 at a total cost of approximately $210 million, which negatively impacted operating cash flow225239 - 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 2024245246 Quantitative and Qualitative Disclosures About Market Risk 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-K250 Controls and Procedures 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, 2025251 - There were no material changes in internal controls over financial reporting during the fiscal quarter ended March 31, 2025252 PART II. Other Information Legal Proceedings 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, LP75 - 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 202576 - 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 Louisiana77 Risk Factors 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-K255 Other Information 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, 2025256 - During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement257 Exhibits 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 Officer259 - Financial information is provided in Inline XBRL format, including the condensed consolidated balance sheets, statements of operations, equity, cash flows, and notes259