CVR Energy Inc., Sugar Land, Texas, on July 29 announced second-quarter net income attributable to CVR Energy stockholders of $21 million (21 cents per diluted share) and EBITDA of $103 million, down from $130 million ($1.29 per diluted share) and $300 million, respectively, in last year’s second quarter.
Net sales for the second quarter came in at $1.97 billion, beating the average analyst estimate (Bloomberg Consensus) of $1.78 billion. Adjusted earnings per diluted share was 9 cents and adjusted EBITDA was $87 million, compared with $1.64 and $347 million, respectively, last year and up from the average analyst estimate (Bloomberg Consensus) of $80 million.
The second quarter earnings results were attributed 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 company’s 78,000 b/d Wynnewood, Okla., refinery that occurred during severe weather in late April, said Dave Lamp, CVR Energy’s CEO. The refinery is now operating at normal rates.
Net income from CVR’s petroleum operations fell to $18 million from $194 million in last year’s second quarter, with Lamp citing weakness in the Midcontinent refined product market as well as downtime and higher expenses related to the Wynnewood fire.
The Nitrogen Fertilizer Segment reported second-quarter net income of $26 million and EBITDA of $54 million on net sales of $133 million, down from last year’s net income of $60 million and EBITDA of $87 million on net sales of $183 million. Nitrogen fertilizer net sales came in at $133 million, beating the average analyst estimate of $115.9 million.
Production at the CVR Partners LP’s fertilizer facilities remained consistent compared to the second quarter of 2023, producing a combined 221,000 st of ammonia during the second quarter, of which 69,000 st were available for sale while the rest was upgraded to other fertilizer products, including 337,000 st of UAN.
Last year’s second quarter saw combined production of 219,000 st of ammonia, with 70,000 st available for sale and the rest upgraded, including 339,000 st of UAN. Average second-quarter realized gate prices for UAN were down 15% from last year, to $268/st from $316/st, while ammonia was down 26%, to $520/st from $707/st.
“CVR Partners achieved solid operating results for the second quarter of 2024 driven by a combined ammonia production rate of 102%,” Lamp said. He added that CVR continues “to explore strategic transactions both in refining and potentially related to the CVR Partners, although we have nothing to report at this point.”
Consolidated cash and cash equivalents were $586 million as of June 30, an increase of $5 million from Dec. 31, 2023. Consolidated total debt and finance lease obligations were $1.6 billion as of June 30, including $548 million held by the Nitrogen Fertilizer Segment.
CVR Energy announced a second-quarter cash dividend of 50 cents per share, while CVR Partners declared a second-quarter cash distribution of $1.90 per common unit. Both will be paid on Aug. 19, 2024, to common unitholders of record as of Aug. 12, 2024.