CVR Energy (CVI) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 net loss of $122–$124 million and loss per share of $1.24; EBITDA loss of $35 million, with results impacted by unplanned downtime, negative RFS mark-to-market, and inventory revaluation.

• Board suspended the quarterly dividend to preserve cash amid challenging refining markets, lower cash from operations, and an upcoming major turnaround at Coffeyville.

• No dividend declared for Q3 2024; YTD 2024 dividends paid totaled $1.50 per share.

• Focus remains on maintaining liquidity, cost control, and safe operations while exploring capital market access and non-core asset sales.

• Results compared to Q3 2023 net income of $353–$354 million and operating income of $445 million.

Financial highlights

• Q3 2024 net sales were $1.83 billion, down from $2.52 billion in Q3 2023; adjusted EBITDA was $63 million, adjusted loss per share $0.50.

• Petroleum segment adjusted EBITDA was $24 million; fertilizer segment adjusted EBITDA was $36 million, supported by higher ammonia and UAN prices.

• Cash and cash equivalents at September 30, 2024, were $534 million; total liquidity (ex-CVR Partners) $713 million; total liquidity including all segments $863 million.

• Free cash flow for Q3 2024 was $13 million, mainly from fertilizer.

• Q3 2024 basic and diluted loss per share was $(1.24), compared to earnings per share of $3.51 in Q3 2023.

Outlook and guidance

• Q4 2024 petroleum throughput expected at 200,000–215,000 bpd; direct operating expenses $100–$110 million; capital spending $38–$70 million.

• Fertilizer Q4 ammonia utilization forecast at 92–97%, with $60–$70 million direct operating expenses and $19–$23 million capital spending.

• Full-year 2024 capital spending guidance reduced to $170–$195 million; turnaround spending $50–$60 million; major Coffeyville turnaround planned for early 2025 with $175–$200 million cash outlay.

• Board will review dividend policy quarterly; resumption depends on post-turnaround and margin normalization.

• Management expects continued volatility in refining margins and fertilizer prices due to global events and regulatory uncertainty.