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Press release from PR Newswire

CVR Energy Reports Fourth Quarter And Record Full Year Results

Tuesday, March 12, 2013

CVR Energy Reports Fourth Quarter And Record Full Year Results08:00 EDT Tuesday, March 12, 2013SUGAR LAND, Texas, March 12, 2013 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) today reported record full year 2012 net income of $378.6 million, or $4.33 per fully diluted share, on net sales of $8,567.3 million.  Fourth quarter 2012 net income was $40.2 million, or 46 cents per fully diluted share, on net sales of $1,880.8 million.  (Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO) The 2012 results compare to net income for the full year 2011 of $345.8 million, or $3.94 per fully diluted share, on net sales of $5,029.1 million, and fourth quarter 2011 net income of $65.9 million, or 75 cents per fully diluted share, on net sales of $1,062.2 million. Fourth quarter 2012 adjusted net income, a non-GAAP financial measure, was $103.8 million, or $1.20 per diluted share, compared to $29.5 million, or 34 cents per diluted share, for the fourth quarter of 2011. Major items impacting the 2012 fourth quarter adjusted net income, all net of taxes, were shared-based compensation of $6.2 million, an unfavorable impact from first-in, first-out (FIFO) accounting of $7.9 million, an unrealized gain on derivatives of $29.8 million, a loss on extinguishment of debt of $22.8 million, and a major scheduled turnaround expense of $56.1 million.Operating income for the fourth quarter 2012 was $124.9 million, up from $26.9 million in the same quarter of 2011. Full year 2012 operating income was $1,034.9 million, up from $566.6 million for the full year 2011."CVR Energy's exceptional financial results in 2012 were driven by strong operating performance and attractive market conditions throughout the year. These results were achieved despite the expense and lost production from our planned major turnarounds at the refinery in Wynnewood and fertilizer plant in Coffeyville, along with a partial turnaround at the Coffeyville refinery," said Jack Lipinski, CVR Energy's chief executive officer. "Our fertilizer segment also had a solid year with CVR Partners generating 2012 full year distributions of $1.81 per common unit.  "In addition to posting record results in 2012, we achieved another significant milestone by taking our petroleum businesses public earlier this year in the largest IPO of a master limited partnership to date," he said. "CVR Refining, LP began trading on the New York Stock Exchange on Jan. 17 under the ticker CVRR. CVR Energy, through a subsidiary, retains 81.3 percent of CVR Refining's common units."This latest IPO effectively makes CVR Energy a diversified holding company owning the General Partners of both CVR Partners and CVR Refining along with the majority of LP units in each company," Lipinski said. Petroleum BusinessThe petroleum business, which includes the Coffeyville and Wynnewood refineries, reported fourth quarter 2012 operating income of $121.3 million, and adjusted EBITDA, a non-GAAP financial measure, of $198.2 million, on net sales of $1,816.2 million, compared to an operating loss in the same quarter a year earlier of $3.3 million, and adjusted EBITDA of $47.6 million, on net sales of $979.5 million. Fourth quarter 2012 throughput of crude oil and all other feedstocks and blendstocks, which was impacted by a major scheduled turnaround at the Wynnewood refinery, averaged 162,603 barrels per day (bpd), compared to 97,630 bpd for the same period in 2011. Crude oil throughput for the fourth quarter 2012 averaged 147,815 bpd per day, compared with 93,705 bpd for the same period in 2011. The year-over-year increase in throughput was mostly driven by the addition of the Wynnewood refinery. Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $25.93 in the fourth quarter 2012 compared to $11.05 during the same period in 2011. Gross profit per crude oil throughput barrel was $10.23 in the fourth quarter 2012, as compared to 90 cents during the same period in 2011. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the fourth quarter 2012 was $11.29, down from $12.53 in the fourth quarter 2011.Coffeyville Refinery The Coffeyville refinery reported fourth quarter 2012 gross profit of $238.4 million, compared to $9.4 million of gross profit for the fourth quarter of 2011. Fourth quarter 2012 crude oil throughput averaged 124,570 bpd, compared to 81,474 bpd in the fourth quarter of 2011. Refining margin adjusted for FIFO impact per crude oil throughput barrel for the fourth quarter of 2012 was $28.08, compared to $12.19 for the same period in 2011. Gross profit per crude oil throughput barrel was $20.80 in the fourth quarter of 2012, compared to $1.26 for the 2011 fourth quarter. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold for the 2012 fourth quarter was $4.20, compared to $13.84 for the 2011 fourth quarter. Fourth quarter 2011 results for the Coffeyville refinery were negatively impacted by a major scheduled turnaround.Wynnewood Refinery CVR Energy acquired the Wynnewood refinery in December 2011. The 2012 fourth quarter represents the refinery's fourth full quarter as a CVR Energy subsidiary.  Fourth quarter 2012 results for the Wynnewood refinery were negatively impacted by a major scheduled turnaround. The refinery had a fourth quarter 2012 gross loss of $97.9 million. Fourth quarter of 2012 crude oil throughput averaged 23,245 bpd. Refining margin adjusted for FIFO impact per crude oil throughput barrel for the fourth quarter of 2012 was $14.67. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold for the fourth quarter was $49.90. Nitrogen Fertilizers BusinessThe fertilizer business operated by CVR Partners, LP reported fourth quarter 2012 operating income of $16.0 million, and adjusted EBITDA, a non-GAAP financial measure, of $27.1 million, on net sales of $67.6 million, compared to operating income of $42.6 million, and adjusted EBITDA of $48.4 million, on net sales of $87.6 million for the 2011 fourth quarter.  Impacting 2012 fourth quarter results was a biennial turnaround at the company's nitrogen fertilizer plant in Coffeyville, Kan.CVR Partners produced 87,700 tons of ammonia during the fourth quarter of 2012, of which 35,300 net tons were available for sale while the rest was upgraded to 127,300 tons of more highly valued UAN. In the 2011 fourth quarter, the plant produced 100,800 tons of ammonia with 27,500 net tons available for sale with the remainder upgraded to 178,300 tons of UAN.For the fourth quarter 2012, average realized plant gate prices for ammonia and UAN were $676 per ton and $274 per ton, respectively, compared to $606 per ton and $334 per ton, respectively, for the equivalent period in 2011.Cash DividendsOn Jan. 24, 2013, the CVR Energy Board of Directors adopted a quarterly cash dividend policy. The company's initial quarterly dividend is expected to be 75 cents per share, or $3.00 per share on an annualized basis, which the company plans to begin paying in the 2013 second quarter. Also on Jan. 24, 2013, the company declared a special dividend of $5.50 per share, which was paid on Feb. 19, 2013, to shareholders of record on Feb. 5, 2013.CVR Energy Fourth Quarter and Full Year 2012 Earnings Conference Call InformationCVR Energy previously announced that it will host its fourth quarter and full year 2012 Earnings Conference Call for analysts and investors on Tuesday, March 12, at 2 p.m. Eastern.The Earnings Conference Call will be broadcast live over the Internet at http://www.videonewswire.com/event.asp?id=91583. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291.For those unable to listen live, the Webcast will be archived and available for 14 days at http://www.videonewswire.com/event.asp?id=91583. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 407365.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.  You can generally identify forward-looking statements by our use of forward-looking terminology such as "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.  For a 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, and any subsequently filed Quarterly Reports on Form 10-Q.  These 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 press 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 petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in two limited partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own a majority of the common units representing limited partner interests of CVR Refining and CVR Partners.For further information, please contact:Investor Relations:Jay FinksCVR Energy, Inc.281-207-3588InvestorRelations@CVREnergy.com               Media Relations:Angie DasbachCVR Energy, Inc. 913-982-0482MediaRelations@CVREnergy.com  CVR Energy, Inc.Financial and Operational Data (all information in this release is unaudited other than the Statement of Operations and cash flow data for the year ended December 31, 2011 and balance sheet data as of December 31, 2011).Three Months EndedDecember 31,Change from 201120122011 Change  Percent (in millions, except per share data)Consolidated Statement of Operations Data:Net sales$  1,880.8$ 1,062.2$     818.677.1%Cost of product sold1,485.1857.3627.873.2Direct operating expenses202.5124.877.762.3Insurance recovery ? business interruption????Selling, general and administrative expenses35.729.06.723.1Depreciation and amortization32.624.28.434.7Operating income124.926.998.0364.3Interest expense and other financing costs(18.2)(14.7)(3.5)23.8Gain (loss) on derivatives, netRealized(57.1)11.1(68.2)(614.4)Unrealized48.992.1(43.2)(46.9)Loss on extinguishment of debt(37.5)?(37.5)?Other income, net0.5?0.5?Income before income tax expense61.5115.4(53.9)(46.7)Income tax expense16.737.1(20.4)(55.0)Net income44.878.3(33.5)(42.8)Net income attributable to noncontrolling interest4.612.4(7.8)(62.9)Net income attributable to CVR Energy stockholders$       40.2$      65.9$      (25.7)(39.0)%_______________Basic earnings per share$       0.46$       0.76$      (0.30)(39.5)%Diluted earnings per share$       0.46$       0.75$      (0.29)(38.7)%Adjusted net income*$     103.8$       29.5$       74.3251.8%Adjusted net income, per diluted share*$       1.20$       0.34$       0.86252.9%Weighted-average common shares outstanding:     Basic86,831,05086,582,800248,2500.3%     Diluted86,831,05087,746,843(915,793)(1.0)% Year EndedDecember 31,Change from 201120122011ChangePercent(in millions, except per share data)Consolidated Statement of Operations Data:Net sales$  8,567.3$  5,029.1$  3,538.270.4%Cost of product sold6,696.93,943.52,753.469.8Direct operating expenses522.1334.1188.056.3Insurance recovery ? business interruption?(3.4)3.4(100.0)Selling, general and administrative expenses183.498.085.487.1Depreciation and amortization130.090.339.744.0Operating income1,034.9566.6468.382.7Interest expense and other financing costs(75.4)(55.8)(19.6)35.1Gain (loss) on derivatives, netRealized(137.6)(7.2)(130.4)1,811.1Unrealized(148.0)85.3(233.3)(273.5)Loss on extinguishment of debt(37.5)(2.1)(35.4)1,685.7Other income, net1.81.30.538.5Income before income tax expense638.2588.150.18.5Income tax expense225.6209.516.17.7Net income412.6378.634.09.0Net income attributable to noncontrolling interest34.032.81.23.7Net income attributable to CVR Energy stockholders$     378.6$      345.8$        32.89.5%_____________Basic earnings per share$ 4.36$ 4.00$ 0.369.0%Diluted earnings per share$ 4.33$ 3.94$ 0.399.9%Adjusted net income*$ 660.1$ 345.7$ 314.490.9%Adjusted net income, per diluted share*$ 7.55$ 3.94$ 3.6191.6%Weighted-average common shares outstanding:       Basic86,822,91386,493,735329,1780.4%       Diluted87,392,27087,766,573(374,303)(0.4)% December 31,December 31,20122011(in millions)Balance Sheet Data:Cash and cash equivalents$ 896.0$ 388.3Working capital1,135.4769.2Total assets3,610.93,119.3Total debt, including current portion898.2863.8Total CVR stockholders' equity1,525.21,151.6Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions)Cash Flow Data:Net cash flow provided by (used in):Operating activities$    (21.2)$     (67.4)$     762.6$   278.6Investing activities(67.1)(630.5)(210.7)(674.4)Financing activities(4.0)187.8(44.3)584.1Net cash flow$    (92.3)$   (510.1)$     507.6$   188.3Other Financial Data:Capital expenditures for property, plant and equipment$ 67.1$ 44.6$ 212.2$ 91.2Segment InformationOur operations are organized into two reportable segments, Petroleum and Nitrogen Fertilizer. Our operations that are not included in the Petroleum and Nitrogen Fertilizer segments are included in Corporate and Other segment (along with elimination of intersegment transactions). The Petroleum segment includes the operations of our Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with our crude oil gathering and pipeline systems. Effective with its initial public offering on January 23, 2013, our Petroleum segment is operated by CVR Refining, LP ("CVR Refining"), in which we own a majority interest as well as the general partner.  The Nitrogen Fertilizer segment is operated by CVR Partners, LP, ("CVR Partners") in which we own a majority interest as well as the general partner. It consists of a nitrogen fertilizer manufacturing facility that utilizes a pet coke gasification process in producing nitrogen fertilizer.  Detailed operating results for the Nitrogen Fertilizer segment for the quarter ended December 31, 2012 are included in CVR Partners' press release dated February 27, 2013.The Petroleum segment, as reported herein, is not reflective of the full and actual financial statements of CVR Refining as certain allocations that were charged to CVR Refining were not made at the Petroleum segment. Beginning in 2013, the financial statements of the Petroleum segment will be the same as CVR Refining's financial statements.PetroleumNitrogen Fertilizer(CVR Partners)Corporateand OtherConsolidated(in millions)Three months ended December 31, 2012Net sales$      1,816.2$            67.6$             (3.0)$      1,880.8Cost of product sold1,476.511.5(2.9)1,485.1Direct operating expenses (1)84.224.6?108.8Major scheduled turnaround expense89.14.6?93.7Selling, general & administrative17.86.011.935.7Depreciation and amortization27.34.90.432.6Operating income (loss)$          121.3$            16.0$           (12.4)$          124.9Capital expenditures$            37.4$            24.7$              5.0$            67.1Year ended December 31, 2012Net sales$      8,281.5$          302.3$           (16.5)$      8,567.3Cost of product sold6,667.346.1(16.5)6,696.9Direct operating expenses (1)302.890.8?393.6Major scheduled turnaround expense123.74.8?128.5Selling, general & administrative67.624.191.7183.4Depreciation and amortization107.620.71.7130.0Operating income (loss)$      1,012.5$          115.8$           (93.4)$      1,034.9Capital expenditures$          120.0$            82.2$            10.0$          212.2 PetroleumNitrogen Fertilizer(CVR Partners)Corporateand OtherConsolidated(in millions)Three months ended December 31, 2011Net sales$          979.5$             87.6$             (4.9)$      1,062.2Cost of product sold849.114.4(6.2)857.3Direct operating expenses (1)49.621.1?70.7Major scheduled turnaround expense54.1??54.1Insurance recovery ? business interruption????Selling, general & administrative11.04.613.429.0Depreciation and amortization19.04.90.324.2Operating income (loss)$             (3.3)$             42.6$           (12.4)$            26.9Capital expenditures$            35.2$               8.6$              0.8$            44.6Year ended December 31, 2011Net sales$      4,751.8$          302.9$           (25.6)$      5,029.1Cost of product sold3,926.642.5(25.6)3,943.5Direct operating expenses (1)181.386.5(0.1)267.7Major scheduled turnaround expense66.4??66.4Insurance recovery ? business interruption?(3.4)?(3.4)Selling, general & administrative41.922.233.998.0Depreciation and amortization69.918.91.590.3Operating income (loss)$          465.7$          136.2$           (35.3)$          566.6Capital expenditures$            68.6$             19.1$              3.5$            91.2(1)Excluding turnaround expenses. PetroleumNitrogen Fertilizer(CVR Partners)Corporateand OtherConsolidated(in millions)December 31, 2012Cash and cash equivalents$         148.1$          127.8$        620.1$        896.0Total assets2,258.5623.0729.43,610.9Total debt, including current portion552.3125.0220.9898.2December 31, 2011Cash and cash equivalents (2)$             ?$          237.0$        151.3$        388.3Total assets2,322.1659.3137.93,119.3Total debt, including current portion?125.0738.8863.8(2)Prior to December 2012, the Petroleum segment was part of a centralized approach to cash management. Accordingly, Corporate and Other is inclusive of the Petroleum segment's cash and cash equivalents and long-term debt as of December 31, 2011. Petroleum Segment Operating DataThe following tables set forth information about our consolidated Petroleum segment operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions, except operating statistics)Petroleum Segment Summary Financial Results:Net sales$   1,816.2$        979.5$   8,281.5$     4,751.8Cost of product sold1,476.5849.16,667.33,926.6Refining margin*339.7130.41,614.2825.2Direct operating expenses84.249.6302.8181.3Major scheduled turnaround expense89.154.1123.766.4Depreciation and amortization27.319.0107.669.9Gross profit139.17.71,080.1507.6Selling, general and administrative expenses17.811.067.641.9Operating income$        121.3$          (3.3)$     1,012.5$        465.7Refining margin adjusted for FIFO impact*$        352.6$           95.3$     1,672.6$        799.6Adjusted Petroleum EBITDA*$        198.2$           47.6$     1,178.9$        580.9Petroleum Segment Key Operating Statistics:Per crude oil throughput barrel:Refining margin*$        24.98$        15.13$        26.04$        21.80FIFO impact (favorable) unfavorable0.95(4.08)0.94(0.68)Refining margin adjusted for FIFO impact*25.9311.0526.9821.12Gross profit10.230.9017.4213.41Direct operating expenses and major scheduled turnaround expenses12.7512.036.886.54Direct operating expenses and major scheduled turnaround expenses per barrel sold$        11.29$        12.53$           6.26$           6.38Barrels sold (barrels per day)166,84289,953186,035106,397 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011Petroleum Segment Summary Refining Throughput and Production Data:(barrels per day)Throughput:Sweet112,11368.9%78,00679.9%130,41472.4%83,53876.7%Light/medium sour20,50812.6%4,9865.1%21,33411.8%1,7041.6%Heavy sour15,1949.3%10,71311.0%17,6089.8%18,46016.9%Total crude oil throughput147,81590.8%93,70596.0%169,35694.0%103,70295.2%All other feedstocks and blendstocks14,7889.2%3,9254.0%10,7916.0%5,2314.8%Total throughput162,603100.0%97,630100.0%180,147100.0%108,933100.0%Production:Gasoline82,85550.6%41,03242.1%89,78749.9%48,48644.3%Distillate64,57739.5%40,09541.1%72,80440.6%45,53541.6%Other (excluding internally produced fuel)16,2849.9%16,41016.8%17,2629.5%15,38514.1%Total refining production (excluding internally produced fuel)163,716100.0%97,537100.0%179,853100.0%109,406100.0%Product price (dollars per gallon):Gasoline$ 2.62$ 2.56$ 2.86$ 2.82Distillate3.132.983.083.03 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011Market Indicators (dollars per barrel):West Texas Intermediate (WTI) NYMEX$    88.23$  94.06$  94.15$  95.11Crude Oil Differentials:WTI less WTS (light/medium sour)9.290.845.402.06WTI less WCS (heavy sour)27.0712.3822.5316.54NYMEX Crack Spreads:Gasoline26.6316.0328.5523.54Heating Oil40.0030.9632.9429.12NYMEX 2-1-1 Crack Spread33.3223.4930.7526.33PADD II Group 3 Basis:Gasoline(4.82)(0.87)(3.11)(1.09)Ultra Low Sulfur Diesel2.570.952.171.98PADD II Group 3 Product Crack:Gasoline21.8215.1625.4522.44Ultra Low Sulfur Diesel42.5731.9135.1131.10PADD II Group 3 2-1-132.1923.5430.2826.77 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions, except operating statistics)Coffeyville Refinery Financial Results:Net sales$   1,548.6$  871.8$   5,632.9$   4,643.9Cost of product sold1,238.3745.84,506.53,823.5Refining margin*310.3126.01,126.4820.4Direct operating expenses54.445.5189.1177.1Major scheduled turnaround expense?54.121.266.4Depreciation and amortization17.517.069.666.0Gross profit$      238.4$       9.4$      846.5$      510.9Refining margin adjusted for FIFO impact*$      321.9$     91.5$   1,164.5$      795.4Coffeyville Refinery Key Operating Statistics:Per crude oil throughput barrel:Refining margin*$      27.07$  16.80$      26.81$      22.34FIFO impact (favorable) unfavorable1.01(4.61)0.91(0.68)Refining margin adjusted for FIFO impact*28.0812.1927.7221.66Gross profit20.801.2620.1513.91Direct operating expenses and major scheduled turnaround expense4.7513.285.016.63Direct operating expenses and major scheduled turnaround expense per barrel sold$     4.20$   13.84$     4.52$     6.45Barrels sold (barrels per day)140,94378,180127,122103,430 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011Coffeyville Refinery Throughput and Production Data:(barrels per day)Throughput:Sweet93,69267.5%67,28680.0%91,58074.3%80,83576.5%Light/medium sour15,68411.3%3,4754.1%5,6014.6%1,3231.3%Heavy sour15,19410.9%10,71312.7%17,60814.3%18,46017.5%Total crude oil throughput124,57089.7%81,47496.8%114,78993.2%100,61895.3%All other feedstocks and blendstocks14,25910.3%2,6943.2%8,4126.8%4,9214.7%Total throughput138,829100.0%84,168100.0%123,201100.0%105,539100.0%Production:Gasoline71,25950.5%33,97540.2%61,99849.6%46,70744.0%Distillate57,38240.7%35,64642.2%52,42941.9%44,41441.9%Other (excluding internally produced   fuel)12,4578.8%14,88517.6%10,6298.5%15,00014.1%Total refining production (excluding   internally produced fuel)141,098100.0%84,506100.0%125,056100.0%106,121100.0% Three Months EndedDecember 31, 2012Year EndedDecember 31, 2012(in millions, except operating statistics)Wynnewood Refinery Financial Results:Net sales$           266.5$        2,647.1Cost of product sold236.42,160.9Refining margin*30.1486.2Direct operating expenses30.1113.7Major scheduled turnaround expense89.1102.5Depreciation and amortization8.834.5Gross profit (loss)$            (97.9)$           235.5Refining margin adjusted for FIFO impact*$             31.5$           506.5Wynnewood Refinery Key Operating Statistics:Per crude oil throughput barrel:Refining margin*$          14.04$          24.34FIFO impact (favorable) unfavorable0.631.01Refining margin adjusted for FIFO impact*14.6725.35Gross profit(45.81)11.79Direct operating expenses and major scheduled turnaround expense55.7610.83Direct operating expenses and major scheduled turnaround expense per barrel sold$          49.90$            9.76Barrels sold (barrels per day)25,97460,496 Three Months EndedDecember 31, 2012Year EndedDecember 31, 2012Wynnewood Refinery Throughput and Production Data:   (barrels per day)Throughput:Sweet18,42177.5%38,83468.2%Light/medium sour4,82420.3%15,73327.6%Heavy sour??  %?? %Total crude oil throughput23,24597.8%54,56795.8%All other feedstocks and blendstocks5292.2%2,3794.2%Total throughput23,774100.0%56,946100.0%Production:Gasoline11,59651.3%27,78950.6%Distillate7,19531.8%20,37537.2%Other (excluding internally produced fuel)3,82716.9%6,63312.2%Total refining production (excluding internally produced fuel)22,618100.0%54,797100.0%Nitrogen Fertilizer Segment Operating DataThe following tables set forth information about the Nitrogen Fertilizer segment operated by CVR Partners. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below. Additional discussion of operating results for the Nitrogen Fertilizer segment for the quarter ended December 31, 2012 are included in CVR Partners' press release dated February 27, 2013.Three Months EndedDecember 31,Year EndedDecember  31,2012201120122011(in millions, except as noted)Nitrogen Fertilizer Segment Financial Results:Net sales$       67.6$       87.6$    302.3$    302.9Cost of product sold11.514.446.142.5Direct operating expenses24.621.190.886.5Major scheduled turnaround expense4.6?4.8?Insurance recovery ? business interruption???(3.4)Selling, general and administrative expenses6.04.624.122.2Depreciation and amortization4.94.920.718.9Operating income$       16.0$       42.6$    115.8$    136.2Adjusted Nitrogen Fertilizer EBITDA*$       27.1$       48.4$    148.2$    162.6 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions, except as noted)Nitrogen Fertilizer Segment Key Operating Statistics:Production (thousand tons):Ammonia (gross produced) (1)87.7100.8390.0411.2Ammonia (net available for sale) (1)35.327.5124.6116.8UAN127.3178.3643.8714.1Petroleum coke consumed (thousand tons)109.7126.3487.3517.3Petroleum coke (cost per ton)$  30$  42$   33$  33Sales (thousand tons):Ammonia38.429.3127.8112.8UAN133.0184.6643.5709.3Product pricing (plant gate) (dollars per ton) (2):Ammonia$ 676$ 606$ 613$ 579UAN$ 274$ 334$ 303$ 284On-stream factors (3):Gasification79.0%97.6%92.6%99.0%Ammonia76.6%97.1%91.1%97.7%UAN68.6%94.1%86.4%95.5%Market Indicators:Ammonia ? Southern Plains (dollars per ton)$ 748$ 651$ 647$ 619UAN ? Mid Cornbelt (dollars per ton)$ 361$ 400$ 369$ 379_______________ Cost of product sold, direct operating expenses and selling, general and administrative expenses are all reflected exclusive of depreciation and amortization. * See Use of Non-GAAP Financial Measures below.(1)Gross tons produced for ammonia represent the total ammonia produced, including ammonia produced that was upgraded into UAN. The net tons available for sale represent the ammonia available for sale that was not upgraded into UAN.(2)Plant gate sales per ton represent net sales less freight and hydrogen revenue divided by product sales volume in tons in the reporting period and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.(3)On-stream factor is the total number of hours operated divided by the total number of hours in the reporting period and is included as a measure of operating efficiency. Excluding the impact of the Linde air separation unit outage and the major scheduled turnaround, the on-stream factors for the three months ended December 31, 2012 would have been 99.7% for gasifier, 98.8% for ammonia and 91.5% for UAN. Excluding the impact of the Linde air separation unit outage, the on-stream factors for the three months ended December 31, 2011 would have been 97.6% for gasifier, 97.1% for ammonia and 94.1% for UAN. Excluding the impact of the Linde air separation unit outage and the major scheduled turnaround, the on-stream factors for the year ended December 31, 2012 would have been 98.1% for gasifier, 97.1% for ammonia and 92.8% for UAN. Excluding the impact of the Linde air separation unit outage, the on-stream factors for the year ended December 31, 2011 would have been 99.2% for gasifier, 98.0% for ammonia and 95.7% for UAN.Use of Non-GAAP Financial MeasuresTo supplement the actual results in accordance with GAAP for the applicable periods, the Company also uses non-GAAP measures as discussed below, which are reconciled to GAAP-based results. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Company's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.Adjusted net income is not a recognized term under GAAP and should not be substituted for net income (loss) as a measure of our performance but rather should be utilized as a supplemental measure of financial performance in evaluating our business. Management believes that adjusted net income provides relevant and useful information that enables external users of our financial statements, such as industry analysts, investors, lenders and rating agencies to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions, except  per share data)Reconciliation of Net Income to Adjusted Net Income:Net Income attributable to CVR Energy stockholders$           40.2$           65.9$        378.6$        345.8Adjustments (all net of taxes):FIFO impact (favorable) unfavorable7.9(21.3)35.5(15.5)Share-based compensation6.22.122.518.6Loss on extinguishment of debt22.8?22.81.3Major scheduled turnaround expense56.132.877.240.2Loss on disposition of fixed assets?0.6?1.5Unrealized (gain) loss on derivatives, net(29.8)(55.8)90.0(51.7)Expenses associated with proxy matters??26.8?Expenses associated with the acquisition of Gary-Williams (1)0.45.26.75.5Adjusted net income$        103.8$         29.5$        660.1$        345.7Adjusted net income per diluted share$         1.20$         0.34$         7.55$         3.94(1)Legal, professional and integration expenses related to the December 2011 acquisition of Gary-Williams. Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold that we are able to sell refined products. Each of the components used in this calculation (net sales and cost of product sold exclusive of depreciation and amortization) can be taken directly from our Statement of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization) adjusted for FIFO impacts. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold (taking into account the impact of our utilization of FIFO) that we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in favorable FIFO impacts when crude oil prices increase and unfavorable FIFO impacts when crude oil prices decrease.Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents operating income adjusted for FIFO impacts (favorable) unfavorable, share-based compensation, major scheduled turnaround expenses, realized gain (loss) on derivatives, net, loss on disposition of fixed assets, depreciation and amortization and other income (expense). Adjusted EBITDA by operating segment is not a recognized term under GAAP and should not be substituted for operating income as a measure of performance but should be utilized as a supplemental measure of performance in evaluating our business. Management believes that adjusted EBITDA by operating segment provides relevant and useful information that enables investors to better understand and evaluate our ongoing operating results and allows for greater transparency in the reviewing of our overall financial, operational and economic performance. Below is a reconciliation of operating income to adjusted EBITDA for the petroleum and nitrogen fertilizer segments for the three months and year ended December 31, 2012 and 2011: Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions)Petroleum:Petroleum operating income$    121.3$       (3.3)$     1,012.5$    465.7    FIFO impacts (favorable) unfavorable12.9(35.1)58.4(25.6)    Share-based compensation4.70.713.58.7    Major scheduled turnaround expenses89.154.1123.766.4    Loss on disposition of fixed assets?1.0?2.5    Realized gain (loss) on derivatives, net(57.1)11.1(137.6)(7.2)    Depreciation and amortization27.319.0107.669.9    Other income?0.10.80.5Adjusted Petroleum EBITDA$    198.2$       47.6$     1,178.9$    580.9 Three Months EndedDecember 31,Year EndedDecember 31,2012201120122011(in millions)Nitrogen Fertilizer:Nitrogen Fertilizer operating income$       16.0$       42.6$    115.8$    136.2    Share-based compensation1.60.96.87.3    Depreciation and amortization4.94.920.718.9    Major scheduled turnaround expense4.6?4.8?    Other income, net??0.10.2Adjusted Nitrogen Fertilizer EBITDA$       27.1$       48.4$    148.2$    162.6Derivatives Summary. To reduce the basis risk between the price of products for Group 3 and that of the NYMEX associated with selling forward derivative contracts for NYMEX crack spreads, we may enter into basis swap positions to lock the price difference. If the difference between the price of products on the NYMEX and Group 3 (or some other price benchmark as we may deem appropriate) is different than the value contracted in the swap, then we will receive from or owe to the counterparty the difference on each unit of product contracted in the swap, thereby completing the locking of our margin. From time to time our Petroleum segment holds various NYMEX positions through a third-party clearing house. In addition, the Petroleum segment enters into commodity swap contracts. The physical volumes are not exchanged and these contracts are net settled with cash.  The table below summarizes our open commodity derivatives positions as of December 31, 2012.  The positions are primarily in the form of 'crack spread' swap agreements with financial counterparties, wherein the Company will receive the fixed prices noted below. Commodity SwapsBarrelsFixed Price(1)First Quarter 20136,600,000$ 25.02Second Quarter 20135,850,00027.25Third Quarter  20135,625,00025.89Fourth Quarter 20134,875,00026.98First Quarter  2014150,00032.95Second Quarter 201475,00032.00Third Quarter 201475,00032.00Fourth Quarter 201475,00032.00Total23,325,000$  26.32(1)Weighted-average price of all positions for period indicated. SOURCE CVR Energy, Inc.