Second quarter net income attributable to CVR Energy stockholders of $21 million; EBITDA of $103 million; adjusted EBITDA of $87 million Second quarter earnings per diluted share of 21 cents and adjusted earnings per diluted share of 9 cents Announced cash dividend of 50 cents per share CVR Partners announced a cash distribution of $1.90 per common unit SUGAR LAND, Texas, July 29, 2024 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE:CVI, "CVR Energy" or the "Company")) today announced net income attributable to CVR Energy stockholders of $21 million, or 21 cents per diluted share, and EBITDA of $103 million for the second quarter of 2024, compared to net income attributable to CVR Energy stockholders of $130 million, or $1.29 per diluted share, and EBITDA of $300 million for the second quarter of 2023. Excluding the adjustments shown in the corresponding earnings release tables, adjusted earnings per diluted share for the second quarter of 2024 was 9 cents and adjusted EBITDA was $87 million, compared to adjusted earnings per diluted share of $1.64 and adjusted EBITDA of $347 million in the second quarter of 2023. "CVR Energy's 2024 second quarter earnings results were attributable to lower refining margins due to a decrease in the Group 3 2-1-1 crack spread and reduced throughputs related to a fire at the Wynnewood refinery that occurred during severe weather," said Dave Lamp, CVR Energy's Chief Executive Officer. "CVR Energy was pleased to announce a second quarter 2024 cash dividend of 50 cents per share. "CVR Partners achieved solid operating results for the second quarter of 2024 driven by a combined ammonia production rate of 102 percent," Lamp said. "CVR Partners was pleased to declare a second quarter 2024 cash distribution of $1.90 per common unit." Petroleum The Petroleum Segment reported second quarter 2024 net income of $18 million and EBITDA of $56 million, compared to net income of $194 million and EBITDA of $220 million for the second quarter of 2023. Adjusted EBITDA for the Petroleum Segment was $37 million for the second quarter of 2024, compared to $258 million for the second quarter of 2023. Combined total throughput for the second quarter of 2024 was approximately 186,000 barrels per day (bpd) compared to approximately 201,000 bpd of combined total throughput for the second quarter of 2023. Refining margin for the second quarter of 2024 was $185 million, or $10.94 per total throughput barrel, compared to $333 million, or $18.21 per total throughput barrel, during the same period in 2023. Included in our second quarter 2024 refining margin were favorable derivative impacts of $17 million from unrealized gains on open crack spread swap positions and favorable inventory valuation impacts of $2 million. Excluding these items, adjusted refining margin for the second quarter of 2024 was $9.81 per barrel, compared to an adjusted refining margin per barrel of $20.27 for the second quarter of 2023. The decrease in adjusted refining margin per barrel was primarily due to a decrease in the Group 3 2-1-1 crack spread. Nitrogen Fertilizer The Nitrogen Fertilizer Segment reported net income of $26 million and EBITDA of $54 million on net sales of $133 million for the second quarter of 2024, compared to net income of $60 million and EBITDA of $87 million on net sales of $183 million for the second quarter of 2023. Production at the CVR Partners, LP's ("CVR Partners") fertilizer facilities remained consistent compared to the second quarter of 2023, producing a combined 221,000 tons of ammonia during the second quarter of 2024, of which 69,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 337,000 tons of urea ammonia nitrate ("UAN"). During the second quarter 2023, the fertilizer facilities produced a combined 219,000 tons of ammonia, of which 70,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 339,000 tons of UAN. For the second quarter 2024, average realized gate prices for UAN showed a reduction compared to the prior year, down 15 percent to $268 per ton, and ammonia was down 26 percent over the prior year to $520 per ton. Average realized gate prices for UAN and ammonia were $316 and $707 per ton, respectively, for the second quarter of 2023. Corporate and Other The Company reported an income tax benefit of $26 million, or (219.7) percent of income before income taxes, for the three months ended June 30, 2024, compared to an income tax expense of $44 million, or 20.9 percent of income before income taxes, for the three months ended June 30, 2023. The decrease in income tax expense was primarily due to a decrease in overall pretax earnings, while the change in the effective tax rate was primarily due to changes in pretax earnings attributable to noncontrolling interest and the impact of federal and state tax credits and incentives in relation to overall pretax earnings. The renewable diesel unit at the Wynnewood refinery had total vegetable oil throughputs for the second quarter of 2024 of approximately 11.7 million gallons, down from 17.8 million gallons in the second quarter of 2023. The decrease was primarily due to the turnaround at the Wynnewood refinery and a catalyst change at the renewable diesel unit during the spring of 2024, in addition to downtime due to a fire at the Wynnewood refinery in April 2024. Cash, Debt and Dividend Consolidated cash and cash equivalents were $586 million at June 30, 2024, an increase of $5 million from December 31, 2023. Consolidated total debt and finance lease obligations were $1.6 billion at June 30, 2024, including $548 million held by the Nitrogen Fertilizer Segment. CVR Energy announced a second quarter 2024 cash dividend of 50 cents per share. The quarterly dividend, as declared by CVR Energy's Board of Directors, will be paid on August 19, 2024, to stockholders of record as of August 12, 2024. Today, CVR Partners announced that the Board of Directors of its general partner declared a second quarter 2024 cash distribution of $1.90 per common unit, which will be paid on August 19, 2024, to common unitholders of record as of August 12, 2024. Second Quarter 2024 Earnings Conference Call CVR Energy previously announced that it will host its second quarter 2024 Earnings Conference Call on Tuesday, July 30, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters. The second quarter 2024 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy's website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/dt2waput. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13747772. Forward-Looking StatementsThis news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; drivers of our results; income, sales, and earnings per share; EBITDA and Adjusted EBITDA; renewable identification numbers ("RINs") expense; asset utilization, capture, production volume, product yield and crude oil gathering rates; cash flow generation; production; operating income and net sales; throughput, including the impact of turnarounds or fires thereon; refining margin, including contributors thereto; impact of costs to comply with the RFS and revaluation of our RFS liability; crude oil and refined product pricing impacts on inventory valuation; dividend yield; derivative gains and losses and the drivers thereof; crack spreads, including the drivers thereof; demand trends; RIN generation levels; ethanol and biodiesel blending activities; inventory levels; benefits of our corporate transformation to segregate our renewables business; access to capital and new partnerships; RIN pricing, including its impact on performance and the Company's ability to offset the impact thereof; disruptions to operations, including impacts on results; carbon capture and decarbonization initiatives; ammonia and UAN pricing; global fertilizer industry conditions; grain prices; crop inventory levels; crop and planting levels; demand for refined products; economic downturns and demand destruction; production rates; production levels and utilization at our nitrogen fertilizer facilities; nitrogen fertilizer sales volumes, including factors driving same; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; income tax expense, including the drivers thereof; changes to pretax earnings and our effective tax rate; the availability of tax credits and incentives; production rates and operations capabilities of our renewable diesel unit, including the ability to return to hydrocarbon service; renewable feedstock throughput; purchases under share or unit repurchase programs (if any), or the termination thereof; reduction of outstanding debt, including through the redemption of outstanding notes; cash and cash equivalent levels; dividends and distributions, including the timing, payment and amount (if any) thereof; direct operating expenses, capital expenditures, depreciation and amortization and turnaround expense; cash reserves; timing of turnarounds; impacts of any pandemic; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; the April 2024 fire at the Wynnewood Refinery including the impact thereof on our operations, financial position or otherwise; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "explore," "evaluate," "intend," "may," "might," "plan," "potential," "predict," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) the health and economic effects of any pandemic, demand for fossil fuels and price volatility of crude oil, other feedstocks and refined products; the ability of Company to pay cash dividends and of CVR Partners to make cash distributions; potential operating hazards, including the impacts of fires at our facilities; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; impacts of the planting season on CVR Partners; our controlling shareholder's intention regarding ownership of our common stock and potential strategic transactions involving us or CVR Partners; general economic and business conditions; political disturbances, geopolitical instability and tensions; impacts of plant outages and weather conditions and events; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission ("SEC") filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. About CVR Energy, Inc.Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewables, petroleum refining and marketing business as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners. Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website. For further information, please contact: Investor RelationsRichard RobertsCVR Energy, Inc.(281) Media RelationsBrandee StephensCVR Energy, Inc. (281) Non-GAAP Measures Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below. As a result of continuing volatile market conditions and the impacts certain non-cash items may have on the evaluation of our operations and results, the Company began disclosing the Adjusted Refining Margin non-GAAP measure, as defined below, in the second quarter of 2024. We believe the presentation of this non-GAAP measure is meaningful to compare our operating results between periods and better aligns with our peer companies. All prior periods presented have been conformed to the definition below. The following are non-GAAP measures we present for the periods ended June 30, 2024 and 2023: EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense. Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization. Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other. Adjusted Refining Margin - Refining Margin adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful. Refining Margin and Adjusted Refining Margin, per Throughput Barrel - Refining Margin and Adjusted Refining Margin divided by the total throughput barrels during the period, which is calculated as total throughput barrels per day times the number of days in the period. Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period. Adjusted EBITDA, Petroleum Adjusted EBITDA and Nitrogen Fertilizer Adjusted EBITDA - EBITDA, Petroleum EBITDA and Nitrogen Fertilizer EBITDA adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful. Adjusted Earnings (Loss) per Share - Earnings (loss) per share adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends. Free Cash Flow - Net cash provided by (used in) operating activities less capital expenditures and capitalized turnaround expenditures. We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly traded companies in the refining and fertilizer industries, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See "Non-GAAP Reconciliations" included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document. Factors Affecting Comparability of Our Financial Results Petroleum Segment Our results of operations for the periods presented may not be comparable with prior periods or to our results of operations in the future due to capitalized expenditures as part of planned turnarounds. Total capitalized expenditures were $3 million and $11 million during the three months ended June 30, 2024 and 2023, respectively, and $42 million and $51 million during the six months ended June 30, 2024 and 2023, respectively. The next planned turnaround is currently scheduled to take place in 2025 at the Coffeyville refinery. CVR Energy, Inc. (all information in this release is unaudited) Consolidated Statement of Operations Data   Three Months EndedJune 30,   Six Months EndedJune 30, (in millions, except per share data)   2024       2023       2024       2023   Net sales $ 1,967     $ 2,236     $ 3,829     $ 4,523   Operating costs and expenses:               Cost of materials and other   1,667       1,743       3,130       3,423   Direct operating expenses (exclusive of depreciation and amortization)   173       165       337       334   Depreciation and amortization   70       71       145       137   Cost of sales   1,910       1,979       3,612       3,894   Selling, general and administrative expenses (exclusive of depreciation and amortization)   28       32       63       71   Depreciation and amortization   2       1       4       4   Loss on asset disposal   —       —       1       —   Operating income   27       224       149       554   Other (expense) income:               Interest expense, net   (19 )     (16 )     (39 )     (32 ) Other income, net   4       4       8       6   Income before income tax expense   12       212       118       528   Income tax (benefit) expense   (26 )     44       (10 )     101   Net income   38       168       128       427   Less: Net income attributable to noncontrolling interest   17       38       25       102   Net income attributable to CVR Energy stockholders $ 21     $ 130     $ 103     $ 325                   Basic and diluted earnings per share $ 0.21     $ 1.29     $ 1.02     $ 3.23   Dividends declared per share $ 0.50     $ 0.50     $ 1.00     $ 1.00                   Adjusted earnings per share $ 0.09     $ 1.64     $ 0.12     $ 3.08   EBITDA* $ 103     $ 300     $ 306     $ 701   Adjusted EBITDA * $ 87     $ 347     $ 186     $ 680                   Weighted-average common shares outstanding - basic and diluted   100.5       100.5       100.5       100.5   _________________________________* See "Non-GAAP Reconciliations" section below. Selected Balance Sheet Data (in millions) June 30, 2024   December 31, 2023 Cash and cash equivalents $ 586   $ 581 Working capital   470     497 Total assets   4,003     4,707 Total debt and finance lease obligations, including current portion   1,584     2,185 Total liabilities   2,962     3,669 Total CVR stockholders' equity   849     847 Selected Cash Flow Data   Three Months EndedJune 30,   Six Months EndedJune 30, (in millions)   2024       2023       2024       2023   Net cash (used in) provided by:               Operating activities $ 81     $ 367     $ 258     $ 614   Investing activities   (74 )     (96 )     (129 )     (130 ) Financing activities   (65 )     (121 )     (729 )     (243 ) Net (decrease) increase in cash, cash equivalents, and restricted cash $ (58 )   $ 150     $ (600 )   $ 241                   Free cash flow* $ 7     $ 271     $ 128     $ 484   _________________________________* See "Non-GAAP Reconciliations" section below. Selected Segment Data   Three Months Ended June 30,     2024     2023 (in millions) Petroleum   NitrogenFertilizer   Consolidated   Petroleum   NitrogenFertilizer   Consolidated Net sales $ 1,795   $ 133   $ 1,967   $ 2,000   $ 183   $ 2,236 Operating income   10     34     27     171     67     224 Net income   18     26     38     194     60     168 EBITDA*   56     54     103     220     87     300                         Capital expenditures (1)                       Maintenance capital expenditures $ 22   $ 4   $ 27   $ 20   $ 5   $ 27 Growth capital expenditures   11     1     14     2     1     21 Total capital expenditures $ 33   $ 5   $ 41   $ 22   $ 6