• Net Loss: $105 million for Q1 2025.
• Loss Per Share: $1.22 for Q1 2025.
• EBITDA: Loss of $61 million for Q1 2025.
• Adjusted EBITDA: $24 million for Q1 2025.
• Petroleum Segment Throughput: Approximately 125,000 barrels per day for Q1 2025.
• Gross Margin (Renewables): $1.13 per gallon for Q1 2025.
• Adjusted EBITDA (Renewables): $3 million for Q1 2025.
• Adjusted EBITDA (Fertilizer): $53 million for Q1 2025.
• Cash Consumed by Operations: $195 million for Q1 2025.
• Free Cash Flow: Use of $285 million for Q1 2025.
• Capital Spending: $55 million on an accrual basis for Q1 2025.
• Consolidated Cash Balance: $695 million as of March 31, 2025.
• Total Liquidity: Approximately $894 million as of March 31, 2025.
• Distribution Declared: $2.26 per common unit for Q1 2025.

• Warning! GuruFocus has detected 8 Warning Sign with CVI.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CVR Energy Inc (NYSE:CVI) reported a positive adjusted EBITDA in the Renewables segment, driven by increased RIN prices and reduced feedstock basis.
• The Fertilizer segment showed strong performance with a consolidated ammonia utilization rate of 101% and higher ammonia sales prices.
• The company completed tie-ins for the initial phase of the distillate recovery project at Coffeyville, which is expected to increase distillate yield by approximately 2%.
• CVR Energy Inc (NYSE:CVI) has no additional planned turnarounds in the Refining segment for 2025 and 2026, which should reduce operational disruptions.
• The company ended the quarter with a strong consolidated cash balance of $695 million, providing financial flexibility.

Negative Points

• CVR Energy Inc (NYSE:CVI) reported a first-quarter consolidated net loss of $105 million and a loss per share of $1.22.
• The company's results were negatively impacted by a planned turnaround at Coffeyville and unplanned events, leading to a loss of $61 million in EBITDA.
• The Renewable Fuel Standard (RFS) obligation had a negative mark-to-market impact of $112 million on the company's financials.
• Direct operating expenses in the Petroleum segment increased to $8.58 per barrel, up from $5.78 per barrel in the first quarter of 2024, primarily due to lower throughput volumes.
• The expiration of the blender's tax credit at the end of 2024 negatively impacted the Renewables segment, as no clean fuel production credits were recognized in the quarter.

Q & A Highlights

Q: Can you provide insights into the current refining market conditions and demand trends? A: David Lamp, CEO, explained that the supply-demand balance is improving, with days of supply shrinking compared to the five-year average. This suggests a more disciplined market, although diesel demand remains slow. The increase in RIN prices has also impacted the market, but overall, the crack spreads seem lower than expected given the current conditions.

Q: What is your perspective on the Renewable Fuel Standard (RFS) and Small Refinery Exemptions (SREs)? A: David Lamp emphasized the importance of decoupling D4 and D6 RINs, suggesting that the D6 mandate should be adjusted to reflect actual production capabilities. He criticized the current RFS implementation, stating it negatively impacts fuel prices for consumers and that the government should minimize RIN prices to benefit the public.

Q: How did CVR Energy achieve positive EBITDA in the Renewables segment despite the expiration of the Blender's Tax Credit (BTC)? A: CFO Dane Neumann attributed the positive EBITDA to favorable realized hedges, elevated RIN prices, and improved feedstock basis. However, he cautioned that some of these factors were exceptional for the period and may not be sustainable in the volatile renewable diesel market.

Q: What are your thoughts on industry consolidation and the potential need for small refiners to scale up? A: David Lamp agreed that economies of scale are crucial for survival in the refining industry. He acknowledged the potential for further consolidation but noted that suitable opportunities are limited. CVR Energy is open to diversification beyond its current footprint if profitable opportunities arise.

Q: Can you provide an update on the Coffeyville refinery turnaround and future plans? A: David Lamp described the turnaround as challenging due to early shutdowns and weather-related issues, which extended the duration. Despite these setbacks, the refinery is expected to recover strongly, with improved margins anticipated. The next planned turnaround is scheduled for 2027 at the Wynnewood refinery.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.