CVR ENERGY INC Q4 FY2025 earnings call

• Strategic priorities: Focus on safe and reliable operations; reevaluate commercial optimization in Petroleum segment, including reversion of RDU and ramping up WCS processing at Coffeyville; proactive approach to M&A for expanding asset footprint; disciplined capital allocation. • Refining sector fundamentals: Global refining capacity additions to slow, refined product demand steady (especially diesel); new pipelines in Mid-Con offer additional outlets. • Fertilizer segment: Strong demand for nitrogen fertilizers expected due to record corn planting; continuing to invest in plant infrastructure and diversify feedstock. • Introduced new Chief Commercial Officer, Travis Capps.

For full year 2025, consolidated net income was $90 million and EBITDA was $591 million. Segment-level EBITDA: Petroleum segment $411 million, Fertilizer segment $211 million, Renewable segment loss $22 million. For fourth quarter 2025, consolidated net loss was $116 million and EBITDA was $51 million. Petroleum segment fourth quarter adjusted EBITDA was $73 million vs $9 million in 2024; Fertilizer segment fourth quarter adjusted EBITDA was $20 million vs $50 million in prior year; Renewable segment fourth quarter adjusted EBITDA was breakeven vs $9 million in 2024 fourth quarter. Fourth quarter results impacted by accelerated depreciation in Renewable segment and extended downtime in Fertilizer segment.

• For full year 2026, estimate total consolidated capital spending to be approximately $200 million to $240 million, turnaround spending in Petroleum segment approximately $15 million to $20 million, growth capital spending $75 million to $90 million. • For first quarter 2026, Petroleum segment estimated total throughput 200,000 to 215,000 barrels per day, direct operating expenses $110 million to $120 million, total capital spending $30 million to $35 million; Fertilizer segment estimated ammonia utilization rate between 95% and 100%, direct operating expenses $57 million to $62 million excluding inventory impacts, total capital spending $25 million to $30 million.

• Downtime in Fertilizer segment due to third-party owned air separation plant; • RINs continuing to weigh on margin capture in refining; • Uncertainty regarding EPA rulings on SRE petitions affecting Wynnewood Refining Company's RIN obligation.

Q: Talk about pragmatic M&A and expansion plan.

A: Focus is on being proactive in engaging with other players, looking at both refining and fertilizer businesses, being disciplined, not stretching balance sheet, and deals must be accretive.

Q: Ramping up WCS runs at Coffeyville refinery.

A: Upgraded metallurgy in last two turnarounds, change in Western Canadian market dynamics due to Venezuela situation led to ramping up to run barrels at Coffeyville for better economic value.

Q: Steep rise in RIN prices.

A: RIN prices lifted due to proposed higher RVO, trying to blend more to reduce exposure, looking at M&A or developing ways to get more blending capacity or move fuel.

Q: Capture rates and jet fuel production at Coffeyville.

A: Constantly looking for margin capture opportunities, early in initiatives, no fixed target yet but will communicate progress.

Q: Product pipeline projects in Mid-Con.

A: Optimistic about Mid-Con for next several years as pipelines being developed will give more outlets, making Mid-Con a more attractive market.