CVR Energy(US:CVI)2022-10-31 16:00Financial Performance - Net sales for the three months ended September 30, 2022, were $2,699 million, an increase of 43.3% compared to $1,883 million for the same period in 2021[19] - Operating income for the three months ended September 30, 2022, was $103 million, a decrease of 41.1% from $175 million in the same period last year[19] - Net income attributable to CVR Energy stockholders for the three months ended September 30, 2022, was $93 million, compared to $84 million for the same period in 2021, representing an increase of 10.7%[19] - For the nine months ended September 30, 2022, net income was $472 million, a significant increase from $49 million in the same period of 2021[22] - Basic and diluted earnings per share for the three months ended September 30, 2022, were $0.92, compared to $0.83 for the same period in 2021, representing an increase of 10.8%[19] Assets and Liabilities - Total current assets as of September 30, 2022, were $1,658 million, up from $1,369 million as of December 31, 2021, reflecting a growth of 21.1%[18] - Total liabilities as of September 30, 2022, were $3,435 million, an increase from $3,136 million as of December 31, 2021, indicating a rise of 9.6%[18] - Cash and cash equivalents increased to $618 million as of September 30, 2022, from $510 million as of December 31, 2021, marking a growth of 21.2%[18] - Long-term debt and finance lease obligations as of September 30, 2022, were $1,587 million, a decrease from $1,654 million as of December 31, 2021, indicating a reduction of 4.1%[18] - Total equity as of September 30, 2022, was $771 million, slightly up from $770 million as of December 31, 2021, showing a marginal increase of 0.1%[18] Cash Flow and Investments - Net cash provided by operating activities reached $868 million, up from $382 million year-over-year[22] - Capital expenditures for the nine months ended September 30, 2022, were $145 million, a decrease from $188 million in 2021[22] - The company reported a net cash used in investing activities of $217 million, compared to $204 million in the previous year[22] - Net cash used in financing activities totaled $543 million, an increase from $279 million in 2021[22] - As of September 30, 2022, cash, cash equivalents, and restricted cash were $625 million, up from $573 million at the end of September 2021[22] Segment Performance - Total revenue for the Petroleum Segment was $1,742 million for the three months ended September 30, 2022, compared to $1,883 million for the same period in 2021, reflecting a decrease of approximately 7.5%[64] - The Nitrogen Fertilizer Segment had remaining performance obligations of approximately $7 million as of September 30, 2022, with expected revenue recognition of $2 million by the end of 2022 and $4 million in 2023[65] - For the three months ended September 30, 2022, the Company's operating income was $103 million, a decrease of 41.14% compared to $175 million in the same period of 2021[170] - For the three months ended September 30, 2022, the Petroleum Segment's operating income was $137 million, and net income was $152 million, representing improvements of $2 million and $6 million compared to the same period in 2021[180] Market Conditions and Economic Factors - The ongoing Russia-Ukraine conflict has led to heightened uncertainty in the global oil and fertilizer markets, impacting commodity prices[129] - Gasoline demand increased due to increased mobility, while diesel demand rose as coastal states reopened to global shipping, contributing to higher refined product prices and crack spreads[133] - The estimated fair value of cash equivalents approximates their carrying amounts, with no transfers of assets or liabilities between fair value levels during the reporting periods[78] - The company continues to monitor its contractual arrangements for potential impacts from global economic conditions, including inflation and interest rates[81] Compliance and Regulatory Matters - The Company recognized an expense of $86 million for compliance with Renewable Fuel Standards (RFS) for the three months ended September 30, 2022[85] - The Company's RFS positions were approximately $715 million as of September 30, 2022, compared to $494 million as of December 31, 2021[85] - The estimated consolidated cost to comply with the Renewable Fuel Standard (RFS) for 2022 is projected to be between $390 million and $400 million, net of RINs generation from renewable diesel operations[141] Production and Operational Metrics - The total throughput for the Petroleum Segment in the three months ended September 30, 2022, was 201,657 barrels per day, a decrease from 210,943 barrels per day in the same period of 2021[177] - The total production for the Petroleum Segment in the three months ended September 30, 2022, was 200,769 barrels per day, down from 208,598 barrels per day in the same period of 2021[179] - The Nitrogen Fertilizer Segment's ammonia utilization decreased to 52% for the three months ended September 30, 2022, down from 94% in the same period in 2021, due to planned turnarounds and unplanned downtime[202] - Gross ammonia production for the three months ended September 30, 2022, was 114,000 tons, a decrease from 205,000 tons in the same period in 2021[202] Shareholder Returns and Dividends - The company declared a special dividend of $2.60 per share, totaling $261 million, which was paid on August 22, 2022[104] - For the third quarter of 2022, CVR Partners declared a distribution of $1.77 per common unit, totaling $19 million, payable to unitholders[111] - Cumulative distributions declared for the first nine months of 2022 reached $14.08 per common unit[125]