CVR Energy (CVI) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $21 million, down from $130 million in Q2 2023, with EBITDA of $103 million versus $300 million a year ago, impacted by weak refining margins and a fire at Wynnewood.

• Adjusted EBITDA for Q2 2024 was $87 million, and adjusted EPS was $0.09, compared to $347 million and $1.64 in Q2 2023.

• Board declared a $0.50 per share dividend for Q2 2024, maintaining financial discipline and liquidity.

• Operations at Wynnewood resumed within weeks after the fire, with the refinery now running at normal rates.

• Results were also affected by lower fertilizer prices and reduced production.

Financial highlights

• Q2 2024 net sales were $1.97 billion, down from $2.24 billion in Q2 2023; operating income was $27 million, down from $224 million.

• Free cash flow for Q2 2024 was $7 million, a sharp decline from $271 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024 were $586 million; total liquidity was $887 million.

• Q2 2024 operating cash flow was $258 million, down from $614 million in the prior year period.

• Q2 2024 EPS was $0.21, compared to $1.29 in Q2 2023.

Outlook and guidance

• Q3 2024 petroleum throughput expected at 200,000–215,000 barrels per day, with direct operating expenses of $95–$105 million.

• Fertilizer segment Q3 ammonia utilization rate projected at 95%–100%, with direct operating expenses of $53–$58 million.

• Full-year 2024 capital spending estimated at $195–$220 million, with turnaround spending of $55–$65 million.

• Management expects RFS compliance costs and regulatory uncertainties to remain significant.

• The company continues to focus on disciplined capital allocation and evaluating strategic investment opportunities.