Q4 2024 CVR Energy Inc Earnings Call Transcript
Key Points
- CVR Energy Inc (CVI) reported a consolidated net income of $45 million and an EBITDA of $394 million for the full year of 2024.
- The fertilizer segment showed strong performance with an adjusted EBITDA of $50 million for the fourth quarter, driven by increased ammonia sales prices and lower feedstock costs.
- The renewable segment saw a significant improvement with an adjusted EBITDA of $9 million for the fourth quarter, compared to a negative $17 million in the same period last year.
- CVR Energy Inc (CVI) increased its liquidity significantly by generating $318 million from a term loan issuance and $90 million from the sale of its interest in the Midway pipeline.
- The company is optimistic about potential improvements in refining market conditions in 2025 due to expected supply rationalization and increased demand.
- The petroleum segment faced challenges with lower crack spreads, resulting in an adjusted EBITDA of only $9 million for the fourth quarter.
- The renewable diesel unit's capacity was reduced to 80 million gallons per year due to catalyst limitations, impacting production efficiency.
- CVR Energy Inc (CVI) is facing uncertainty in the renewable segment due to reliance on government subsidies, which are politically driven and unpredictable.
- The planned turnaround at Coffeyville is expected to extend by 10 to 15 days and increase costs by $10 million to $15 million due to unforeseen circumstances.
- The company is dealing with increased direct operating expenses in the petroleum segment, rising to $5.13 per barrel in the fourth quarter from $4.69 per barrel in the previous year.
Greetings and welcome to the CVR Energy fourth-quarter 2024 conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Richard Roberts, Vice President of Financial Planning and Analysis and Investor Relations. Thank you, sir. You may begin.
Thank you, Christine. Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CVR Energy fourth-quarter 2024 earnings call. With me today are Dave Lamp, our Chief Executive Officer; Dane Neumann, our Chief Financial Officer; and other members of management.
Prior to discussing our 2024 fourth-quarter and full-year results, let me remind you that this conference call may contain forward-looking statements as that term is defined under federal securities laws. For this purpose, any statements made during this call that are not statements of historical facts may be deemed to be forward-looking
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