CVR Energy(US:CVI)2026-02-19 19:00Financial Data and Key Metrics Changes - For the full year 2025, the company reported consolidated net income of $90 million and EBITDA of $591 million [4] - The fourth quarter consolidated net loss was $116 million, with EBITDA of $51 million, impacted by accelerated depreciation and extended downtime at the fertilizer facility [4][6] - Adjusted EBITDA for the fourth quarter was $91 million, with adjusted losses per share of $0.80 [6] Business Segment Data and Key Metrics Changes - Petroleum segment generated EBITDA of $411 million for the full year, with adjusted EBITDA of $73 million for Q4 2025, up from $9 million in Q4 2024 due to higher crack spreads and increased throughput [4][6] - Fertilizer segment EBITDA was $211 million for the full year, with Q4 adjusted EBITDA of $20 million, down from $50 million in the prior year due to planned turnaround and startup issues [4][11] - Renewable segment reported a loss of $22 million for the full year, with breakeven adjusted EBITDA for Q4 2025, down from $9 million in Q4 2024 [4][10] Market Data and Key Metrics Changes - Combined total throughput for Q4 2025 was approximately 218,000 barrels per day, with throughput utilization at 97% of nameplate capacity [7] - Benchmark cracks for Q4 softened to an average of $22.70 per barrel, with realized margin adjusted for various liabilities at $9.92 per barrel, representing a 44% capture rate [8] - RINs prices declined approximately 18 cents per barrel from Q3 2025 levels, averaging $6.05 per barrel for Q4 [9] Company Strategy and Development Direction - The company aims to focus on safe and reliable operations, reevaluating commercial optimization opportunities to improve margin capture in the petroleum segment [18][19] - Plans to expand asset footprint with a disciplined approach to capital allocation, targeting growth in both refining and fertilizer segments [20] - The company is optimistic about refining sector fundamentals, anticipating steady demand growth for refined products and a slowdown in global refining capacity additions [21] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the refining margins despite RINs pressures, expecting continued support from EPA actions regarding SRE petitions [22] - In the fertilizer segment, strong demand for nitrogen fertilizers is anticipated due to projected corn planting increases [23] - The company is optimistic about the Midcontinent market dynamics with new pipeline developments expected to enhance operational opportunities [49] Other Important Information - Cash flow from operations for Q4 was breakeven, with free cash flow usage of $55 million [12] - Total consolidated capital spending for 2025 was $197 million, with an estimated $200 million-$240 million for 2026 [13] - The company completed a $1 billion senior notes offering to extend debt maturity profiles and improve financial flexibility [14][15] Q&A Session Summary Question: Expansion plans and asset acquisition strategy - The company is looking for proactive engagement in M&A discussions, focusing on both refining and fertilizer sectors while maintaining financial discipline [26][27] Question: Dividend return expectations - Management indicated that a clear path to further debt reduction is necessary before considering a modest dividend return, emphasizing sustainability in any future dividend [30][31][32] Question: Ramping up WCS runs at Coffeyville refinery - The company is increasing WCS processing due to favorable market conditions and upgraded facility capabilities, aiming for throughput of 20,000 barrels per day [36][37] Question: RIN prices and blending strategies - Management acknowledged rising RIN prices and is exploring options to blend more barrels and acquire additional blending capacity to mitigate exposure [39][40][41] Question: Capture rates and pipeline projects - The company is optimistic about improving capture rates and sees potential benefits from new pipeline projects enhancing market dynamics in the Midcontinent [45][48]