CVR Energy, Inc. Q2 FY2025 earnings call

• Refining market conditions improved in the second quarter, but results were impacted by an unfavorable mark-to-market impact of RFS obligation and reduced throughputs post-Coffeyville turnaround. - Renewable Diesel Unit at Wynnewood processed ~14 million gallons of vegetable fuel oil in Q2 2025, impacted by unplanned downtime in May, with gross margin $0.38 per gallon. - Fertilizer segment had planned and unplanned downtime at facilities, ammonia utilization rate 91%, with strong demand for UAN and ammonia. - Dave Lamp announced intention to retire as President and CEO at year end, with Mark Pytosh set to lead CVR Energy moving forward.

Petroleum segment: Second quarter 2025 combined total throughput was approximately 172,000 barrels per day with light product yield of 99% on crude oil processed. Adjusted EBITDA was $38 million. Renewable segment: Adjusted EBITDA was a loss of $4 million for the second quarter, driven by a decline in the HOBO spread and waiting for final IRS regulations. Fertilizer segment: Adjusted EBITDA was $67 million for the second quarter, with higher UAN and ammonia sales pricing and volumes driving the increase relative to the prior year period.

• Third quarter 2025 Petroleum segment estimated throughputs: 200,000 - 215,000 barrels per day, direct operating expenses $105M - $115M, capital spending $25M - $30M. - Fertilizer segment Q3 2025: Ammonia utilization rate 93% - 98% with planned downtime at East Dubuque for control system upgrades, direct operating expenses $60M - $65M, capital spending $20M - $25M. - Renewables segment Q3 2025: Estimated throughput 16 - 20 million gallons, direct operating expenses $8M - $10M, capital spending $1M - $3M. - Full year 2025: Estimated total consolidated capital spending $165M - $200M, turnaround spending $190M.

• Unfavorable mark-to-market impact of outstanding RFS obligation. - Potential issues with EPA's handling of small refinery exemptions and RFS regulations, including uncertainty around SRE petitions and regulatory rulings. - Dependence on market conditions, including crack spreads, RIN prices, and fertilizer demand, which are subject to various external factors like weather and geopolitics.

Q: First question on cost of fuel, inventory impact in the quarter and ways to mitigate, and 2026 CapEx and turnaround.

A: David L. Lamp and Dane J. Neumann discussed inventory draw impact on capture rate, estimating 7%-9% impact, and mentioned '26 CapEx guidance will be provided later with no major turnarounds planned until '27.

Q: Question on refining cycle outlook and small refinery exemptions.

A: David L. Lamp provided multiyear refining outlook optimistic due to limited capacity adds and potential GDP growth from Big Beautiful Bill, and discussed stance on small refinery exemptions, stating Wynnewood is a strong case and EPA's handling has been challenged in courts.