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]

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]