CVR Energy, Inc. (CVI), last month, announced second quarter 2014 net income of $83.7 million, or 96 cents per diluted share, on net sales of $2,540.3 million, compared to net income of $183.4 million, or $2.11 per diluted share, on net sales of $2,220.3 million for the 2013 second quarter. Second quarter 2014 adjusted EBITDA, a non-GAAP financial measure, was $147.2 million, compared to second quarter 2013 adjusted EBITDA of $221.3 million.
For the first six months of 2014, net income was $210.4 million, or $2.42 per diluted share, on net sales of $4,987.8 million, compared to net income of $348.4 million, or $4.01 per diluted share, on net sales of $4,572.7 million for the same period a year earlier. Adjusted EBITDA for the first six months of 2014 was $301.4 million, compared to adjusted EBITDA of $507.3 million for the first six months of 2013.
“In the fertilizer segment, CVR Partners benefitted from higher average realized gate prices per ton for urea ammonium nitrate (UAN) during the second quarter of 2014 as compared to this year’s first quarter,” said Jack Lipinski, CVR Energy’s chief executive officer. “At CVR Refining, the refineries posted a combined crude throughput of 212,047 barrels per day (bpd) processed in the 2014 second quarter.
Overshadowing our second quarter results, however, is the unfortunate accident at CVR Refining’s Coffeyville refinery on July 29 that injured four employees. We remain steadfast in our commitment to safety and are currently focused on providing support and assistance to the injured employees and their families.”
The company also announced a second quarter 2014 cash dividend of 75 cents per share. The dividend, as declared by CVR Energy’s Board of Directors, will be paid on Aug. 18, 2014, to stockholders of record on Aug. 11, 2014.
CVR Energy’s second quarter cash dividend brings the cumulative cash dividends paid or declared for the first six months of 2014 to $3.50 per share. On July 17, 2014, CVR Energy announced a special dividend of $2.00 per share, which will be paid on Aug. 4, 2014, to stockholders of record on July 28, 2014. Today, CVR Refining announced a 2014 second quarter cash distribution of 96 cents per common unit, and CVR Partners announced a 2014 second quarter cash distribution of 33 cents per common unit.
Petroleum Business:
The petroleum business, which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported second quarter 2014 operating income of $151.9 million on net sales of $2,466.3 million, compared to operating income of $229.1 million on net sales of $2,138.1 million in the second quarter of 2013.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $13.96 in the 2014 second quarter, compared to $19.18 for the same period in 2013. Direct operating expenses per barrel sold, exclusive of depreciation and amortization, for the 2014 second quarter was $4.57, compared to $4.60 in the second quarter of 2013. Second quarter 2014 throughputs of crude oil and all other feedstocks and blendstocks for the Coffeyville and Wynnewood refineries totaled 221,469 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 201,925 bpd for the same period in 2013.
Nitrogen Fertilizers Business:
The fertilizer business, which is operated by CVR Partners, reported second quarter 2014 operating income of $18.8 million on net sales of $77.2 million, compared to operating income of $37.1 million on net sales of $88.8 million for the second quarter of 2013.
For the second quarter of 2014, average realized gate prices for UAN and ammonia were $283 per ton and $521 per ton, respectively, compared to $331 per ton and $688 per ton, respectively, for the same period in 2013.
CVR Partners produced 92,200 tons of ammonia and purchased approximately 3,000 additional tons of ammonia during the second quarter of 2014, of which 3,200 net tons were available for sale while the rest was upgraded to 223,400 tons of UAN. In the 2013 second quarter, the plant produced 91,300 tons of ammonia and purchased approximately 4,000 additional tons of ammonia, of which 2,200 net tons were available for sale while the remainder was upgraded to 225,200 tons of UAN.
Cash and Debt:
The consolidated cash and cash equivalents, which included $420.0 million for CVR Refining and $78.5 million for CVR Partners, was $998.7 million at June 30, 2014. Consolidated total debt was $675.5 million at June 30, 2014. The company had no debt exclusive of CVR Refining’s and CVR Partners’ debt.
