Day: October 28, 2024

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• Third quarter net income of $4 million, or 36 cents per common unit; EBITDA of $36 million
• Announced cash distribution of $1.19 per common unit

SUGAR LAND, Texas, Oct. 28, 2024 (GLOBE NEWSWIRE) — CVR Partners, LP UAN “CVR Partners” or the “Partnership”))), a manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products, today announced net income of $4 million, or 36 cents per common unit, and EBITDA of $36 million on net sales of $125 million for the third quarter of 2024, compared to net income of $1 million, or 7 cents per common unit, and EBITDA of $32 million on net sales of $131 million for the third quarter of 2023.

“CVR Partners posted solid operating results for the third quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 97 percent,” said Mark Pytosh, Chief Executive Officer. “Harvest is nearing completion and ammonia demand for the fall application has been strong.

“Compared to 2023, nitrogen fertilizer prices reset higher in the new planting season, attributable to solid customer demand and positive farmer economics,” Pytosh said. “We continue to focus on generating free cash flow and are pleased to declare a third quarter 2024 cash distribution of $1.19 per common unit.”

Consolidated Operations

Production at CVR Partners’ fertilizer facilities decreased slightly compared to the third quarter of 2023, producing a combined 212,000 tons of ammonia during the third quarter of 2024, of which 61,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 321,000 tons of urea ammonia nitrate (“UAN”). During the third quarter of 2023, the fertilizer facilities produced a combined 217,000 tons of ammonia, of which 68,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 358,000 tons of UAN.

For the third quarter 2024, average realized gate prices for UAN showed an improvement compared to the prior year, up 3 percent to $229 per ton, and ammonia was up 9 percent over the prior year to $399 per ton. Average realized gate prices for UAN and ammonia were $223 and $365 per ton, respectively, for the third quarter of 2023.

Distributions

CVR Partners also announced that on October 28, 2024, the Board of Directors of the Partnership’s general partner (the “Board”) declared a third quarter 2024 cash distribution of $1.19 per common unit, which will be paid on November 18, 2024, to common unitholders of record as of November 8, 2024.

CVR Partners is a variable distribution master limited partnership. As a result, its distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, and use of cash and cash reserves deemed necessary or appropriate by the Board.

Third Quarter 2024 Earnings Conference Call

CVR Partners previously announced that it will host its third quarter 2024 Earnings Conference Call on Tuesday, October 29, at 11 a.m. Eastern. This Earnings Conference Call may also include discussion of the Partnership’s developments, forward-looking information and other material information about business and financial matters.

The third quarter 2024 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Partners’ website at www.CVRPartners.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8029. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/6b54kfdw. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13749243.

Qualified Notice
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Partners’ distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Partners’ distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Forward-Looking Statements
This news release contains forward-looking statements. 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; net income and net sales, including factors driving same; EBITDA and Adjusted EBITDA; drivers of our results; utilization and production rates; nitrogen fertilizer pricing and demand; sales volumes; farmer economics; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; use of proceeds under our credit facility; distributions associated with our 45Q transaction, including the timing and amount thereof; carbon capture and decarbonization initiatives; planted grain acres; free cash flow generation; distributions, including the timing, payment and amount (if any) thereof; global fertilizer industry conditions; grain prices; crop inventory levels; purchases under our unit repurchase program (if any), including the timing, pricing and amount or termination thereof; direct operating expenses; capital expenditures; depreciation and amortization; turnaround expense and timing; cash reserves; inventories and adjustments thereto; impacts of any pandemic, including the duration thereof; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; 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, impacts of the planting season on our business, CVR Energy, Inc.’s and its controlling stockholder’s intention regarding potential strategic transactions involving the Partnership, 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 Partners 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 Partners, LP
Headquartered in Sugar Land, Texas, CVR Partners is a Delaware limited partnership focused on the production, marketing and distribution of nitrogen fertilizer products. It primarily produces urea ammonium nitrate (UAN) and ammonia, which are predominantly used by farmers to improve the yield and quality of their crops. CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,100 ton-per-day UAN unit and a dual-train gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. CVR Partners’ East Dubuque, Illinois, nitrogen fertilizer manufacturing facility includes a 1,075 ton-per-day ammonia unit and a 950 ton-per-day UAN unit.

Investors and others should note that CVR Partners may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Partners may use these channels to distribute material information about the Partnership and to communicate important information about the Partnership, corporate initiatives and other matters. Information that CVR Partners posts on its website could be deemed material; therefore, CVR Partners encourages investors, the media, its customers, business partners and others interested in the Partnership to review the information posted on its website.

Contact Information:

Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVRPartners.com

Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVRPartners.com

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.

The following are non-GAAP measures we present for the periods ended September 30, 2024 and 2023:

EBITDA – Net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

Adjusted EBITDA – 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.

Available Cash for Distribution – EBITDA for the quarter excluding non-cash income or expense items (if any), for which adjustment is deemed necessary or appropriate by the Board in its sole discretion, less (i) reserves for maintenance capital expenditures, debt service and other contractual obligations, and (ii) reserves for future operating or capital needs (if any), in each case, that the Board deems necessary or appropriate in its sole discretion. Available Cash for Distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the Board.

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 GAAP results, including, but not limited to, our operating performance as compared to other publicly traded companies in the fertilizer industry, 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 GAAP financial measures. Refer to the “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.

CVR Partners, LP
(all information in this release is unaudited)
Statement of Operations Data
	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per unit data)		2024				2023				2024				2023
Net sales (1)	$	125,203			$	130,592			$	385,769			$	539,858
Operating costs and expenses:
Cost of materials and other		26,263				31,004				77,704				100,993
Direct operating expenses (exclusive of depreciation and amortization)		55,761				58,459				158,300				171,761
Depreciation and amortization		24,732				24,119				64,063				59,084
Cost of sales		106,756				113,582				300,067				331,838
Selling, general and administrative expenses		7,447				7,805				21,065				22,479
Loss on asset disposal		4				1,067				17				1,324
Operating income		10,996				8,138				64,620				184,217
Other (expense) income:
Interest expense, net		(7,241	)			(7,501	)			(22,416	)			(21,594	)
Other income (expense), net		52				125				376				(88	)
Income before income tax expense		3,807				762				42,580				162,535
Income tax expense (benefit)		—				31				(25	)			77
Net income	$	3,807			$	731			$	42,605			$	162,458
Basic and diluted earnings per common unit	$	0.36			$	0.07			$	4.03			$	15.37
Distributions declared per common unit		1.90				4.14				5.50				25.07
EBITDA*	$	35,780			$	32,382			$	129,059			$	243,213
Available Cash for Distribution*		12,612				16,370				53,035				170,441
Weighted-average common units outstanding:
Basic and Diluted		10,570				10,570				10,570				10,570

___________________________________
*	See “Non-GAAP Reconciliations” section below for a reconciliation of these amounts.
(1)	Below are the components of net sales:

   

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2024			2023			2024			2023
Components of net sales:
Fertilizer sales	$	109,486		$	116,504		$	346,590		$	493,521
Freight in revenue		11,321			9,909			26,914			31,755
Other		4,396			4,179			12,265			14,582
Total net sales	$	125,203		$	130,592		$	385,769		$	539,858

Selected Balance Sheet Data

(in thousands)	September 30, 2024			December 31, 2023
Cash and cash equivalents	$	110,539		$	45,279
Working capital		121,441			90,396
Total assets		986,626			975,332
Total debt		547,710			547,308
Total liabilities		699,274			672,452
Total partners’ capital		287,352			302,880

Selected Cash Flow Data

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2024				2023				2024				2023
Net cash flow provided by (used in):
Operating activities	$	86,725			$	70,102			$	137,750			$	261,389
Investing activities		(3,627	)			(5,366	)			(14,357	)			6,928
Financing activities		(20,083	)			(44,260	)			(58,133	)			(265,481	)
Net increase in cash and cash equivalents	$	63,015			$	20,476			$	65,260			$	2,836

Capital Expenditures

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Maintenance	$	6,488		$	8,091		$	15,591		$	17,282
Growth		3,211			192			3,614			815
Total capital expenditures	$	9,699		$	8,283		$	19,205		$	18,097

Key Operating Data

Ammonia Utilization (1)
	Three Months Ended September 30,						Nine Months Ended September 30,
(percent of capacity utilization)	2024			2023			2024			2023
Consolidated	97	%		99	%		96	%		101	%

___________________________________

(1)

Reflects our ammonia utilization rates on a consolidated basis and at each of our facilities. Utilization is an important measure used by management to assess operational output at each of the Partnership’s facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and nine months ended September 30, 2024 and 2023 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.

Sales and Production Data

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Consolidated sales volumes (thousand tons):
Ammonia		62			62			175			183
UAN		336			387			950			1,075
Consolidated product pricing at gate (dollars per ton): (1)
Ammonia	$	399		$	365		$	481		$	633
UAN		229			223			254			330
Consolidated production volume (thousand tons):
Ammonia (gross produced) (2)		212			217			626			660
Ammonia (net available for sale) (2)		61			68			191			200
UAN		321			358			964			1,063
Feedstock:
Petroleum coke used in production (thousands of tons)		133			131			395			386
Petroleum coke used in production (dollars per ton)	$	44.69		$	84.09		$	60.93		$	78.49
Natural gas used in production (thousands of MMBtus) (3)		2,082			2,133			6,443			6,429
Natural gas used in production (dollars per MMBtu) (3)	$	2.19		$	2.67		$	2.40		$	3.57
Natural gas in cost of materials and other (thousands of MMBtus) (3)		1,783			2,636			5,403			6,354
Natural gas in cost of materials and other (dollars per MMBtu) (3)	$	2.18		$	2.51		$	2.50		$	4.21

___________________________________
(1)	Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
(2)	Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
(3)	The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.

Key Market Indicators

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Ammonia — Southern plains (dollars per ton)	$	481		$	429		$	507		$	533
Ammonia — Corn belt (dollars per ton)		529			501			550			621
UAN — Corn belt (dollars per ton)		240			272			264			314
Natural gas NYMEX (dollars per MMBtu)	$	2.23		$	2.66		$	2.22		$	2.58

Q4 2024 Outlook

The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2024. See “Forward-Looking Statements” above.

	Q4 2024
	Low				High
Ammonia utilization rates
Consolidated		92	%			97	%
Coffeyville Facility		90	%			95	%
East Dubuque Facility		95	%			100	%
Direct operating expenses (in millions) (1)	$	60			$	70
Capital expenditures (in millions) (2)	$	19			$	23

___________________________________
(1)	Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and impacts of inventory adjustments.
(2)	Capital expenditures are disclosed on an accrual basis.

Non-GAAP Reconciliations:

Reconciliation of Net Income to EBITDA, Adjusted EBITDA, and Available Cash for Distribution

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2024				2023				2024				2023
Net income	$	3,807			$	731			$	42,605			$	162,458
Interest expense, net		7,241				7,501				22,416				21,594
Income tax expense (benefit)		—				31				(25	)			77
Depreciation and amortization		24,732				24,119				64,063				59,084
EBITDA and Adjusted EBITDA		35,780				32,382				129,059				243,213
Adjustments (Reserves)/Releases:
Accrued interest expense (excluding capitalized interest)		(8,486	)			(8,468	)			(25,456	)			(25,399	)
Utility pass-through expense (1)		—				—				—				(1,350	)
Future operating needs (2)		—				7,500				—				(12,500	)
Capital expenditures (3)		(10,762	)			(11,391	)			(40,416	)			(41,382	)
Turnaround expenditures, net (4)		(3,178	)			(2,359	)			(9,772	)			(8,198	)
Equity method investment (5)		(742	)			(794	)			(380	)			16,557
Principal payments on senior secured notes and deferred financing costs		—				(500	)			—				(500	)
Available cash for distribution (6)	$	12,612			$	16,370			$	53,035			$	170,441
Common units outstanding		10,570				10,570				10,570				10,570

___________________________________
(1)	Amount consists of adjustment of expenses incurred by the city of Coffeyville during winter storm Uri in 2021 and cash impacts thereof.
(2)	Amount consists of reserves established by the Board for potential future cash needs related to nitrogen fertilizer seasonality and feedstock price volatility.
(3)	Amount consists of maintenance capital expenditures, including additional reserves for future growth projects of $4.3 million and $24.8 million for the three and nine months ended September 30, 2024 and $3.3 million and $24.1 million for the three and nine months ended September 30, 2023.
(4)	Amount consists of reserves for periodic, planned turnarounds, net of expenditures incurred in the period.
(5)	Amount consists of distributions received by the Partnership adjusted for the amortization of deferred revenue related to the 45Q transaction.
(6)	Amount represents the cumulative available cash for distribution based on full year results. However, available cash for distribution is calculated quarterly, with distributions (if any) being paid in the following period. The Partnership declared and paid a $1.68, $1.92, and $1.90 cash distribution related to the fourth quarter of 2023 and the first and second quarters of 2024, respectively, and declared a cash distribution of $1.19 per common unit related to the third quarter of 2024 to be paid in November 2024.

• Third quarter net loss attributable to CVR Energy stockholders of $124 million; EBITDA loss of $35 million; adjusted EBITDA of $63 million
• Third quarter loss per diluted share of $1.24 and adjusted loss per diluted share of 50 cents
• CVR Energy will not pay a cash dividend for the third quarter of 2024
• CVR Partners announced a cash distribution of $1.19 per common unit

SUGAR LAND, Texas, Oct. 28, 2024 (GLOBE NEWSWIRE) — CVR Energy, Inc. CVI “CVR Energy” or the “Company”))) today announced a net loss attributable to CVR Energy stockholders of $124 million, or $1.24 per diluted share, and an EBITDA loss of $35 million for the third quarter of 2024, compared to net income attributable to CVR Energy stockholders of $353 million, or $3.51 per diluted share, and EBITDA of $530 million for the third quarter of 2023. Excluding the adjustments shown in the corresponding earnings release tables, adjusted loss per diluted share for the third quarter of 2024 was 50 cents and adjusted EBITDA was $63 million, compared to adjusted earnings per diluted share of $1.89 and adjusted EBITDA of $313 million in the third quarter of 2023.

“CVR Energy’s 2024 third quarter earnings results for its refining business were impacted by reduced refining throughputs attributable to unplanned downtime at both facilities partially caused by external power supply outages during the quarter,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “The Board’s decision to suspend the quarterly dividend reflects its concerns on just how long the current margin environment will persist in light of the Company’s large, planned turnaround at its Coffeyville refinery in the first quarter of 2025.

“CVR Partners achieved solid operating results for the third quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 97 percent,” Lamp said. “CVR Partners was pleased to declare a third quarter 2024 cash distribution of $1.19 per common unit.”

Petroleum

The Petroleum Segment reported a third quarter 2024 net loss of $110 million and an EBITDA loss of $75 million, compared to net income of $460 million and EBITDA of $484 million for the third quarter of 2023. Adjusted EBITDA for the Petroleum Segment was $24 million for the third quarter of 2024, compared to $281 million for the third quarter of 2023.

Combined total throughput for the third quarter of 2024 was approximately 189,000 barrels per day (bpd) compared to approximately 212,000 bpd of combined total throughput for the third quarter of 2023.

Refining margin for the third quarter of 2024 was $44 million, or $2.53 per total throughput barrel, compared to $607 million, or $31.05 per total throughput barrel, during the same period in 2023. Included in our third quarter 2024 refining margin were unfavorable mark-to-market impacts on our outstanding RFS obligation of $59 million, unfavorable derivative impacts of $9 million from open crack spread swap positions and unfavorable inventory valuation impacts of $31 million. Excluding these items, adjusted refining margin for the third quarter of 2024 was $8.23 per barrel, compared to an adjusted refining margin per barrel of $20.73 for the third 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 $4 million and EBITDA of $36 million on net sales of $125 million for the third quarter of 2024, compared to net income of $1 million and EBITDA of $32 million on net sales of $131 million for the third quarter of 2023.

Production at CVR Partners, LP’s (“CVR Partners”) fertilizer facilities decreased slightly compared to the third quarter of 2023, producing a combined 212,000 tons of ammonia during the third quarter of 2024, of which 61,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 321,000 tons of urea ammonia nitrate (“UAN”). During the third quarter of 2023, the fertilizer facilities produced a combined 217,000 tons of ammonia, of which 68,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 358,000 tons of UAN.

For the third quarter 2024, average realized gate prices for UAN showed an improvement compared to the prior year, up 3 percent to $229 per ton, and ammonia was up 9 percent over the prior year to $399 per ton. Average realized gate prices for UAN and ammonia were $223 and $365 per ton, respectively, for the third quarter of 2023.

Corporate and Other

The Company reported an income tax benefit of $6 million, or 4.6 percent of loss before income taxes, for the three months ended September 30, 2024, compared to an income tax expense of $84 million, or 19.3 percent of income before income taxes, for the three months ended September 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 third quarter of 2024 of approximately 19.6 million gallons, down from 23.8 million gallons in the third quarter of 2023. The decrease was primarily due to running the unit at lower utilization rates in the current period in an effort to optimize catalyst life.

Cash, Debt and Dividend

Consolidated cash and cash equivalents were $534 million at September 30, 2024, a decrease of $47 million from December 31, 2023. Consolidated total debt and finance lease obligations were $1.6 billion at September 30, 2024, including $548 million held by the Nitrogen Fertilizer Segment.

CVR Energy will not pay a cash dividend for the third quarter of 2024.

Today, CVR Partners announced that the Board of Directors of its general partner declared a third quarter 2024 cash distribution of $1.19 per common unit, which will be paid on November 18, 2024, to common unitholders of record as of November 8, 2024.

Third Quarter 2024 Earnings Conference Call

CVR Energy previously announced that it will host its third quarter 2024 Earnings Conference Call on Tuesday, October 29, 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 third 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/fm39ca3r. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13749245.

Forward-Looking Statements
This 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, losses, and earnings per diluted 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; margin environment; impact of costs to comply with the RFS and revaluation of our RFS liability; outcome of litigation and disputes, including impact on our financial position and cash flows; 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 our results and our ability to offset the impact thereof; disruptions to operations (planned and unplanned), 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; ability to access capital markets, secure financing or sell assets; cash and cash equivalent levels; debt levels; borrowings under our credit facilities (if any); dividends and distributions, including the timing, payment and amount (if any) thereof; any suspension of our dividend, including the duration thereof; direct operating expenses, capital expenditures, depreciation and amortization; efforts to reduce or defer expenses and the amount and impact thereof; cash reserves; turnaround timing and expense, including the impacts thereof on our liquidity; 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 and cost thereof on and to 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.

Contact Information:

Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVREnergy.com

Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVREnergy.com

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 September 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 underlying operational results of the period or that may obscure results and trends we deem useful.

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 $2 million during the three months ended September 30, 2024 and 2023, respectively, and $45 million and $53 million during the nine months ended September 30, 2024 and 2023, respectively. The next planned turnaround is currently scheduled to take place in the first quarter of 2025 at the Coffeyville refinery.

CVR Energy, Inc. (all information in this release is unaudited)
Consolidated Statement of Operations Data
	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions, except per share data)		2024				2023				2024				2023
Net sales	$	1,833			$	2,522			$	5,663			$	7,045
Operating costs and expenses:
Cost of materials and other		1,666				1,787				4,796				5,211
Direct operating expenses (exclusive of depreciation and amortization)		165				170				502				503
Depreciation and amortization		73				80				218				217
Cost of sales		1,904				2,037				5,516				5,931
Selling, general and administrative expenses (exclusive of depreciation and amortization)		40				38				103				109
Depreciation and amortization		2				1				6				4
Loss on asset disposal		—				1				1				1
Operating (loss) income		(113	)			445				37				1,000
Other (expense) income:
Interest expense, net		(18	)			(11	)			(56	)			(44	)
Other income, net		3				4				10				10
(Loss) income before income tax benefit		(128	)			438				(9	)			966
Income tax (benefit) expense		(6	)			84				(14	)			185
Net (loss) income		(122	)			354				5				781
Less: Net income attributable to noncontrolling interest		2				1				27				103
Net (loss) income attributable to CVR Energy stockholders	$	(124	)		$	353			$	(22	)		$	678
Basic and diluted (loss) earnings per share	$	(1.24	)		$	3.51			$	(0.22	)		$	6.74
Dividends declared per share	$	0.50			$	1.50			$	1.50			$	2.50
Adjusted (loss) earnings per share	$	(0.50	)		$	1.89			$	(0.38	)		$	4.98
EBITDA*	$	(35	)		$	530			$	271			$	1,231
Adjusted EBITDA *	$	63			$	313			$	249			$	994
Weighted-average common shares outstanding – basic and diluted		100.5				100.5				100.5				100.5

_________________

* See “Non-GAAP Reconciliations” section below.

Selected Consolidated Balance Sheet Data

(in millions)	September 30, 2024			December 31, 2023
Cash and cash equivalents	$	534		$	581
Working capital		353			497
Total assets		3,878			4,707
Total debt and finance lease obligations, including current portion		1,582			2,185
Total liabilities		3,022			3,669
Total CVR stockholders’ equity		675			847

Selected Consolidated Cash Flow Data

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)		2024				2023				2024				2023
Net cash (used in) provided by:
Operating activities	$	48			$	370			$	306			$	984
Investing activities		(35	)			(51	)			(164	)			(181	)
Financing activities		(65	)			(181	)			(794	)			(424	)
Net (decrease) increase in cash, cash equivalents, and restricted cash	$	(52	)		$	138			$	(652	)		$	379
Free cash flow*	$	13			$	318			$	141			$	802

_________________

* See “Non-GAAP Reconciliations” section below.

Selected Segment Data

	Three Months Ended September 30,
		2024											2023
(in millions)	Petroleum				Nitrogen Fertilizer			Consolidated				Petroleum			Nitrogen Fertilizer			Consolidated
Net sales	$	1,648			$	125		$	1,833			$	2,298		$	131		$	2,522
Operating (loss) income		(119	)			11			(113	)			431			8			445
Net (loss) income		(110	)			4			(122	)			460			1			354
EBITDA*		(75	)			36			(35	)			484			32			530
Capital expenditures(1)
Maintenance capital expenditures	$	22			$	7		$	31			$	20		$	8		$	30
Growth capital expenditures		6				3			8				6			—			21
Total capital expenditures	$	28			$	10		$	39			$	26		$	8		$	51

	Nine Months Ended September 30,
		2024									2023
(in millions)	Petroleum			Nitrogen Fertilizer			Consolidated			Petroleum			Nitrogen Fertilizer			Consolidated
Net sales	$	5,165		$	386		$	5,663		$	6,290		$	540		$	7,045
Operating income		9			65			37			838			184			1,000
Net income		35			43			5			913			162			781
EBITDA*		152			129			271			989			243			1,231
Capital expenditures(1)
Maintenance capital expenditures	$	66		$	15		$	87		$	70		$	17		$	92
Growth capital expenditures		31			4			43			9			1			56
Total capital expenditures	$	97		$	19		$	130		$	79		$	18		$	148

 _________________ 

* See “Non-GAAP Reconciliations” section below.
(1)   Capital expenditures are shown exclusive of capitalized turnaround expenditures.
Selected Balance Sheet Data

	September 30, 2024									December 31, 2023
(in millions)	Petroleum			Nitrogen Fertilizer			Consolidated			Petroleum			Nitrogen Fertilizer			Consolidated
Cash and cash equivalents	$	275		$	111		$	534		$	375		$	45		$	581
Total assets		2,804			987			3,878			2,978			975			4,707
Total debt and finance lease obligations, including current portion(1)		39			548			1,582			44			547			2,185

 _________________ 

(1)   Corporate total debt and finance lease obligations, including current portion consisted of $995 million and $1,594 million at September 30, 2024 and December 31, 2023, respectively.

Petroleum Segment

Key Operating Metrics per Total Throughput Barrel

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)		2024			2023			2024			2023
Refining margin *	$	2.53		$	31.05		$	9.96		$	24.33
Adjusted refining margin *		8.23			20.73			9.51			20.02
Direct operating expenses *		5.72			5.39			6.14			5.58

 _________________
* See “Non-GAAP Reconciliations” section below.

Refining Throughput and Production Data by Refinery

Throughput Data	Three Months Ended September 30,				Nine Months Ended September 30,
(in bpd)	2024		2023		2024		2023
Coffeyville
Gathered crude	66,781		68,176		71,993		62,442
Other domestic	35,111		49,303		36,549		47,491
Canadian	6,243		2,731		8,423		2,307
Condensate	—		7,401		4,244		7,718
Other crude oil	3,876		—		1,484		—
Other feedstocks and blendstocks	11,691		12,260		11,678		12,538
Wynnewood
Gathered crude	51,821		53,554		43,055		51,519
Other domestic	1,504		543		1,309		1,822
Condensate	9,663		15,780		8,634		14,567
Other feedstocks and blendstocks	2,604		2,672		3,058		2,984
Total throughput	189,294		212,420		190,427		203,388

Production Data	Three Months Ended September 30,						Nine Months Ended September 30,
(in bpd)	2024			2023			2024			2023
Coffeyville
Gasoline	62,031			69,833			68,732			67,463
Distillate	52,030			60,661			55,237			56,311
Other liquid products	5,169			4,463			5,578			4,461
Solids	4,734			4,416			4,901			3,896
Wynnewood
Gasoline	34,539			36,997			30,746			37,656
Distillate	23,902			25,615			19,722			24,825
Other liquid products	5,874			9,038			4,600			7,355
Solids	11			9			8			10
Total production	188,290			211,032			189,524			201,977
Light product yield (as % of crude throughput)(1)	98.6	%		97.8	%		99.3	%		99.1	%
Liquid volume yield (as % of total throughput)(2)	97.0	%		97.3	%		96.9	%		97.4	%
Distillate yield (as % of crude throughput)(3)	43.4	%		43.7	%		42.7	%		43.2	%

 _________________

(1) Total Gasoline and Distillate divided by total Gathered crude, Other domestic, Canadian, and Condensate throughput (collectively, “Total Crude Throughput”).
(2) Total Gasoline, Distillate, and Other liquid products divided by total throughput.
(3) Total Distillate divided by Total Crude Throughput.

Key Market Indicators

	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
West Texas Intermediate (WTI) NYMEX	$	75.27			$	82.22			$	77.62			$	77.25
Crude Oil Differentials to WTI:
Brent		3.43				3.71				4.20				4.70
WCS (heavy sour)		(13.84	)			(15.91	)			(14.43	)			(16.33	)
Condensate		(0.32	)			(0.22	)			(0.60	)			(0.18	)
Midland Cushing		0.78				1.53				1.14				1.32
NYMEX Crack Spreads:
Gasoline		19.86				32.40				23.31				32.61
Heating Oil		22.21				45.20				27.78				40.35
NYMEX 2-1-1 Crack Spread		21.03				38.80				25.54				36.48
PADD II Group 3 Product Basis:
Gasoline		(1.77	)			0.84				(7.43	)			(2.39	)
Ultra-Low Sulfur Diesel		(1.51	)			(0.25	)			(5.15	)			(0.38	)
PADD II Group 3 Product Crack Spread:
Gasoline		18.09				33.24				15.88				30.22
Ultra-Low Sulfur Diesel		20.70				44.96				22.62				39.97
PADD II Group 3 2-1-1		19.40				39.10				19.25				35.10

Nitrogen Fertilizer Segment

Ammonia Utilization Rates ⁽¹⁾

	Three Months Ended September 30,						Nine Months Ended September 30,
(percent of capacity utilization)	2024			2023			2024			2023
Consolidated	97	%		99	%		96	%		101	%

 _________________

(1) Reflects our ammonia utilization rates on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of CVR Partners’ facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and nine months ended September 30, 2024 and 2023 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.
Sales and Production Data

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Consolidated sales volumes (thousand tons):
Ammonia		62			62			175			183
UAN		336			387			950			1,075
Consolidated product pricing at gate (dollars per ton):(1)
Ammonia	$	399		$	365		$	481		$	633
UAN		229			223			254			330
Consolidated production volume (thousand tons):
Ammonia(gross produced)(2)		212			217			626			660
Ammonia(net available for sale)(2)		61			68			191			200
UAN		321			358			964			1,063
Feedstock:
Petroleum coke used in production(thousands of tons)		133			131			395			386
Petroleum coke used in production(dollars per ton)	$	44.69		$	84.09		$	60.93		$	78.49
Natural gas used in production(thousands of MMBtus)(3)		2,082			2,133			6,443			6,429
Natural gas used in production(dollars per MMBtu)(3)	$	2.19		$	2.67		$	2.40		$	3.57
Natural gas in cost of materials and other(thousands of MMBtus)(3)		1,783			2,636			5,403			6,354
Natural gas in cost of materials and other(dollars per MMBtu)(3)	$	2.18		$	2.51		$	2.50		$	4.21

 _________________

(1) Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
(2) Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
(3) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.

Key Market Indicators

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Ammonia — Southern plains(dollars per ton)	$	481		$	429		$	507		$	533
Ammonia — Corn belt(dollars per ton)		529			501			550			621
UAN — Corn belt(dollars per ton)		240			272			264			314
Natural gas NYMEX(dollars per MMBtu)	$	2.23		$	2.66		$	2.22		$	2.58

Q4 2024 Outlook

The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2024. See “Forward-Looking Statements” above.

	Q4 2024
	Low				High
Petroleum
Total throughput(bpd)		200,000				215,000
Direct operating expenses(in millions)(1)	$	100			$	110
Turnaround(2)		8				12
Renewables(3)
Total throughput(in millions of gallons)		17				22
Direct operating expenses(in millions)(1)	$	9			$	11
Nitrogen Fertilizer
Ammonia utilization rates
Consolidated		92	%			97	%
Coffeyville Fertilizer Facility		90	%			95	%
East Dubuque Fertilizer Facility		95	%			100	%
Direct operating expenses(in millions)(1)	$	60			$	70
Capital Expenditures (in millions)(2)
Petroleum	$	38			$	42
Renewables(3)		1				2
Nitrogen Fertilizer		19				23
Other		1				3
Total capital expenditures	$	59			$	70

 _________________

(1) Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and inventory valuation impacts.
(2) Turnaround and capital expenditures are disclosed on an accrual basis.
(3) As of September 30, 2024, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification 280.

Non-GAAP Reconciliations

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)		2024				2023				2024				2023
Net (loss) income	$	(122	)		$	354			$	5			$	781
Interest expense, net		18				11				56				44
Income tax (benefit) expense		(6	)			84				(14	)			185
Depreciation and amortization		75				81				224				221
EBITDA		(35	)			530				271				1,231
Adjustments:
Revaluation of RFS liability, unfavorable (favorable)		59				(174	)			(32	)			(228	)
Unrealized loss on derivatives, net		9				48				16				35
Inventory valuation impacts, unfavorable (favorable)		30				(91	)			(6	)			(44	)
Adjusted EBITDA	$	63			$	313			$	249			$	994

Reconciliation of Basic and Diluted (Loss) Earnings per Share to Adjusted (Loss) Earnings per Share

	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Basic and diluted (loss) earnings per share	$	(1.24	)		$	3.51			$	(0.22	)		$	6.74
Adjustments:(1)
Revaluation of RFS liability, unfavorable (favorable)		0.44				(1.30	)			(0.24	)			(1.69	)
Unrealized loss on derivatives, net		0.07				0.36				0.12				0.26
Inventory valuation impacts, unfavorable (favorable)		0.23				(0.68	)			(0.04	)			(0.33	)
Adjusted (loss) earnings per share	$	(0.50	)		$	1.89			$	(0.38	)		$	4.98

 _________________

(1) Amounts are shown after-tax, using the Company’s marginal tax rate, and are presented on a per share basis using the weighted average shares outstanding for each period.

Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)		2024				2023				2024				2023
Net cash provided by operating activities	$	48			$	370			$	306			$	984
Less:
Capital expenditures		(34	)			(50	)			(124	)			(150	)
Capitalized turnaround expenditures		(2	)			(3	)			(46	)			(53	)
Return of equity method investment		1				1				5				21
Free cash flow	$	13			$	318			$	141			$	802

Reconciliation of Petroleum Segment Net (Loss) Income to EBITDA and Adjusted EBITDA

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)		2024				2023				2024				2023
Petroleum net (loss) income	$	(110	)		$	460			$	35			$	913
Interest income, net		(5	)			(26	)			(16	)			(65	)
Depreciation and amortization		40				50				133				141
Petroleum EBITDA		(75	)			484				152				989
Adjustments:
Revaluation of RFS liability, unfavorable (favorable)		59				(174	)			(32	)			(228	)
Unrealized loss on derivatives, net		9				53				16				37
Inventory valuation impacts, unfavorable (favorable)(1)		31				(82	)			(8	)			(48	)
Petroleum Adjusted EBITDA	$	24			$	281			$	128			$	750

Reconciliation of Petroleum Segment Gross (Loss) Profit to Refining Margin and Adjusted Refining Margin

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)		2024				2023				2024				2023
Net sales	$	1,648			$	2,298			$	5,165			$	6,290
Less:
Cost of materials and other		(1,604	)			(1,691	)			(4,645	)			(4,939	)
Direct operating expenses (exclusive of depreciation and amortization)		(100	)			(105	)			(320	)			(310	)
Depreciation and amortization		(40	)			(50	)			(133	)			(141	)
Gross (loss) profit		(96	)			452				67				900
Add:
Direct operating expenses (exclusive of depreciation and amortization)		100				105				320				310
Depreciation and amortization		40				50				133				141
Refining margin		44				607				520				1,351
Adjustments:
Revaluation of RFS liability, unfavorable (favorable)		59				(174	)			(32	)			(228	)
Unrealized loss on derivatives, net		9				53				16				37
Inventory valuation impacts, unfavorable (favorable)(1)		31				(82	)			(8	)			(48	)
Adjusted refining margin	$	143			$	404			$	496			$	1,112

 _________________

(1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.

Reconciliation of Petroleum Segment Total Throughput Barrels and Metrics per Total Throughput Barrel

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Total throughput barrels per day		189,294			212,420			190,427			203,388
Days in the period		92			92			274			273
Total throughput barrels		17,415,033			19,542,631			52,176,994			55,524,925
(in millions, except per total throughput barrel)
Refining margin	$	44		$	607		$	520		$	1,351
Refining margin per total throughput barrel	$	2.53		$	31.05		$	9.96		$	24.33
Adjusted refining margin	$	143		$	404		$	496		$	1,112
Adjusted refining margin per total throughput barrel	$	8.23		$	20.73		$	9.51		$	20.02
Direct operating expenses (exclusive of depreciation and amortization)	$	100		$	105		$	320		$	310
Direct operating expenses per total throughput barrel	$	5.72		$	5.39		$	6.14		$	5.58

Reconciliation of Nitrogen Fertilizer Segment Net Income to EBITDA and Adjusted EBITDA

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)		2024			2023			2024			2023
Nitrogen Fertilizer net income	$	4		$	1		$	43		$	162
Interest expense, net		7			8			22			22
Depreciation and amortization		25			23			64			59
Nitrogen Fertilizer EBITDA and Adjusted EBITDA	$	36		$	32		$	129		$	243

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