On February 18, 2025, CVR Energy Inc (CVI, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full-year 2024. The company, a holding entity engaged in petroleum refining and nitrogen fertilizer manufacturing, reported a challenging year with significant declines in net income and EBITDA compared to 2023.
Company Overview
CVR Energy Inc operates through its subsidiaries in petroleum refining and nitrogen fertilizer manufacturing. The company owns complex full-coking crude oil refineries, a crude oil gathering system, pipelines, storage tanks, and marketing and supply operations. Its refineries process various crude oil blends, and products are distributed to customers such as retailers, railroads, and farm cooperatives.
Financial Performance and Challenges
For the full-year 2024, CVR Energy Inc reported a net income attributable to stockholders of $7 million, or $0.06 per diluted share, a stark decrease from $769 million, or $7.65 per diluted share, in 2023. The company's EBITDA also fell to $394 million from $1.4 billion in the previous year. The fourth quarter of 2024 saw a net income of $28 million, or $0.28 per diluted share, compared to $91 million, or $0.91 per diluted share, in the fourth quarter of 2023. These results fell short of analyst estimates, which projected a quarterly earnings per share of -$0.65. The annual earnings per share estimate was -$0.85.
Key Financial Achievements
Despite the challenges, CVR Energy Inc enhanced its liquidity by $408 million in the fourth quarter through a term loan and the sale of its 50% interest in Midway Pipeline. The company also paid cumulative cash dividends of $1.00 per share for 2024, reflecting its commitment to returning value to shareholders.
Segment Performance
The Petroleum Segment reported a fourth quarter net income of $35 million and EBITDA of $72 million, down from $158 million and $196 million, respectively, in the same period of 2023. The segment's refining margin decreased significantly due to reduced crack spreads.
The Renewables Segment showed improvement, with a fourth quarter net loss of $3 million and EBITDA of $3 million, compared to a net loss of $30 million and an EBITDA loss of $26 million in the fourth quarter of 2023. The segment benefited from lower vegetable oil feed prices and an increased Heating Oil - Bean Oil spread.
The Nitrogen Fertilizer Segment reported a fourth quarter net income of $18 million and EBITDA of $50 million, an improvement from $10 million and $38 million, respectively, in the fourth quarter of 2023. However, full-year results showed a decline in net income and EBITDA compared to 2023.
Income Statement and Balance Sheet Highlights
CVR Energy Inc's net sales for the fourth quarter of 2024 were $1.947 billion, down from $2.202 billion in the same period of 2023. Operating income also decreased to $21 million from $124 million. The company's total assets stood at $4.263 billion as of December 31, 2024, with total liabilities of $3.375 billion.
Commentary and Analysis
“CVR Energy’s 2024 full-year and fourth quarter results for its refining business were lower than the previous year due to reduced crack spreads and, to a lesser degree, decreased throughputs,” said Dave Lamp, CVR Energy’s Chief Executive Officer.
The company's performance reflects the broader challenges in the oil and gas industry, including fluctuating crack spreads and market volatility. However, strategic moves to enhance liquidity and focus on operational efficiencies in the Renewables Segment may position CVR Energy Inc for future improvements.
| Metric | Q4 2024 | Q4 2023 | Full-Year 2024 | Full-Year 2023 |
|---|---|---|---|---|
| Net Income Attributable to Stockholders | $28 million | $91 million | $7 million | $769 million |
| EBITDA | $122 million | $204 million | $394 million | $1.4 billion |
| Adjusted EBITDA | $67 million | $170 million | $317 million | $1.2 billion |
For more detailed insights and analysis, visit the full earnings report on the SEC website.
Explore the complete 8-K earnings release (here) from CVR Energy Inc for further details.
