CVR Energy Reports Fourth Quarter And Record Full Year Results

        CVR Energy Reports Fourth Quarter And Record Full Year Results

PR Newswire

SUGAR LAND, Texas, March 12, 2013

SUGAR LAND, Texas, March 12, 2013 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI)
today reported record full year 2012 net income of $378.6 million, or $4.33
per fully diluted share, on net sales of $8,567.3 million. Fourth quarter
2012 net income was $40.2 million, or 46 cents per fully diluted share, on net
sales of $1,880.8 million. 

(Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO)

The 2012 results compare to net income for the full year 2011 of $345.8
million, or $3.94 per fully diluted share, on net sales of $5,029.1 million,
and fourth quarter 2011 net income of $65.9 million, or 75 cents per fully
diluted share, on net sales of $1,062.2 million.

Fourth quarter 2012 adjusted net income, a non-GAAP financial measure, was
$103.8 million, or $1.20 per diluted share, compared to $29.5 million, or 34
cents per diluted share, for the fourth quarter of 2011. Major items impacting
the 2012 fourth quarter adjusted net income, all net of taxes, were
shared-based compensation of $6.2 million, an unfavorable impact from
first-in, first-out (FIFO) accounting of $7.9 million, an unrealized gain on
derivatives of $29.8 million, a loss on extinguishment of debt of $22.8
million, and a major scheduled turnaround expense of $56.1 million.

Operating income for the fourth quarter 2012 was $124.9 million, up from $26.9
million in the same quarter of 2011. Full year 2012 operating income was
$1,034.9 million, up from $566.6 million for the full year 2011.

"CVR Energy's exceptional financial results in 2012 were driven by strong
operating performance and attractive market conditions throughout the year.
These results were achieved despite the expense and lost production from our
planned major turnarounds at the refinery in Wynnewood and fertilizer plant in
Coffeyville, along with a partial turnaround at the Coffeyville refinery,"
said Jack Lipinski, CVR Energy's chief executive officer. "Our fertilizer
segment also had a solid year with CVR Partners generating 2012 full year
distributions of $1.81 per common unit.

"In addition to posting record results in 2012, we achieved another
significant milestone by taking our petroleum businesses public earlier this
year in the largest IPO of a master limited partnership to date," he said.
"CVR Refining, LP began trading on the New York Stock Exchange on Jan. 17
under the ticker CVRR.CVR Energy, through a subsidiary, retains 81.3 percent
of CVR Refining's common units.

"This latest IPO effectively makes CVR Energy a diversified holding company
owning the General Partners of both CVR Partners and CVR Refining along with
the majority of LP units in each company," Lipinski said.

Petroleum Business

The petroleum business, which includes the Coffeyville and Wynnewood
refineries, reported fourth quarter 2012 operating income of $121.3 million,
and adjusted EBITDA, a non-GAAP financial measure, of $198.2 million, on net
sales of $1,816.2 million, compared to an operating loss in the same quarter a
year earlier of $3.3 million, and adjusted EBITDA of $47.6 million, on net
sales of $979.5 million.

Fourth quarter 2012 throughput of crude oil and all other feedstocks and
blendstocks, which was impacted by a major scheduled turnaround at the
Wynnewood refinery, averaged 162,603 barrels per day (bpd), compared to 97,630
bpd for the same period in 2011. Crude oil throughput for the fourth quarter
2012 averaged 147,815 bpd per day, compared with 93,705 bpd for the same
period in 2011. The year-over-year increase in throughput was mostly driven by
the addition of the Wynnewood refinery.

Refining margin adjusted for FIFO impact per crude oil throughput barrel, a
non-GAAP financial measure, was $25.93 in the fourth quarter 2012 compared to
$11.05 during the same period in 2011. Gross profit per crude oil throughput
barrel was $10.23 in the fourth quarter 2012, as compared to 90 cents during
the same period in 2011.

Direct operating expenses, including major scheduled turnaround expenses, per
barrel sold, exclusive of depreciation and amortization, for the fourth
quarter 2012 was $11.29, down from $12.53 in the fourth quarter 2011.

Coffeyville Refinery

The Coffeyville refinery reported fourth quarter 2012 gross profit of $238.4
million, compared to $9.4 million of gross profit for the fourth quarter of
2011. Fourth quarter 2012 crude oil throughput averaged 124,570 bpd, compared
to 81,474 bpd in the fourth quarter of 2011. Refining margin adjusted for FIFO
impact per crude oil throughput barrel for the fourth quarter of 2012 was
$28.08, compared to $12.19 for the same period in 2011. Gross profit per crude
oil throughput barrel was $20.80 in the fourth quarter of 2012, compared to
$1.26 for the 2011 fourth quarter. Direct operating expenses, including major
scheduled turnaround expenses, per barrel sold for the 2012 fourth quarter was
$4.20, compared to $13.84 for the 2011 fourth quarter. Fourth quarter 2011
results for the Coffeyville refinery were negatively impacted by a major
scheduled turnaround.

Wynnewood Refinery

CVR Energy acquired the Wynnewood refinery in December 2011. The 2012 fourth
quarter represents the refinery's fourth full quarter as a CVR Energy
subsidiary. Fourth quarter 2012 results for the Wynnewood refinery were
negatively impacted by a major scheduled turnaround.

The refinery had a fourth quarter 2012 gross loss of $97.9 million. Fourth
quarter of 2012 crude oil throughput averaged 23,245 bpd. Refining margin
adjusted for FIFO impact per crude oil throughput barrel for the fourth
quarter of 2012 was $14.67. Direct operating expenses, including major
scheduled turnaround expenses, per barrel sold for the fourth quarter was
$49.90.

Nitrogen Fertilizers Business

The fertilizer business operated by CVR Partners, LP reported fourth quarter
2012 operating income of $16.0 million, and adjusted EBITDA, a non-GAAP
financial measure, of $27.1 million, on net sales of $67.6 million, compared
to operating income of $42.6 million, and adjusted EBITDA of $48.4 million, on
net sales of $87.6 million for the 2011 fourth quarter. Impacting 2012 fourth
quarter results was a biennial turnaround at the company's nitrogen fertilizer
plant in Coffeyville, Kan.

CVR Partners produced 87,700 tons of ammonia during the fourth quarter of
2012, of which 35,300 net tons were available for sale while the rest was
upgraded to 127,300 tons of more highly valued UAN. In the 2011 fourth
quarter, the plant produced 100,800 tons of ammonia with 27,500 net tons
available for sale with the remainder upgraded to 178,300 tons of UAN.

For the fourth quarter 2012, average realized plant gate prices for ammonia
and UAN were $676 per ton and $274 per ton, respectively, compared to $606 per
ton and $334 per ton, respectively, for the equivalent period in 2011.

Cash Dividends

On Jan. 24, 2013, the CVR Energy Board of Directors adopted a quarterly cash
dividend policy. The company's initial quarterly dividend is expected to be 75
cents per share, or $3.00 per share on an annualized basis, which the company
plans to begin paying in the 2013 second quarter. Also on Jan. 24, 2013, the
company declared a special dividend of $5.50 per share, which was paid on Feb.
19, 2013, to shareholders of record on Feb. 5, 2013.

CVR Energy Fourth Quarter and Full Year 2012 Earnings Conference Call
Information

CVR Energy previously announced that it will host its fourth quarter and full
year 2012 Earnings Conference Call for analysts and investors on Tuesday,
March 12, at 2 p.m. Eastern.

The Earnings Conference Call will be broadcast live over the Internet at
http://www.videonewswire.com/event.asp?id=91583. For investors or analysts who
want to participate during the call, the dial-in number is (877) 407-8291.

For those unable to listen live, the Webcast will be archived and available
for 14 days at http://www.videonewswire.com/event.asp?id=91583. A repeat of
the conference call can be accessed by dialing (877) 660-6853, conference ID
407365.

Forward Looking Statements
This news release may contain forward-looking statements within the meaning of
Section27A of the Securities Act of 1933, as amended, and Section21E of the
Securities Exchange Act of 1934, as amended. You can generally identify
forward-looking statements by our use of forward-looking terminology such as
"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. For a 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 Form10-K, and any subsequently filed Quarterly
Reports on Form10-Q. These 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 press 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 petroleum refining and nitrogen fertilizer
manufacturing industries through its holdings in two limited partnerships, CVR
Refining, LP and CVR Partners, LP. CVR Energy subsidiaries serve as the
general partner and own a majority of the common units representing limited
partner interests of CVR Refining and CVR Partners.

For further information, please contact:

Investor Relations:
Jay Finks
CVR Energy, Inc.
281-207-3588
InvestorRelations@CVREnergy.com

Media Relations:
Angie Dasbach
CVR Energy, Inc.
913-982-0482
MediaRelations@CVREnergy.com



CVR Energy, Inc.
Financial and Operational Data (all information in this release is unaudited
other than the Statement of Operations and cash flow data for the year ended
December 31, 2011 and balance sheet data as of December 31, 2011).

                             Three Months Ended
                                                       Change from 2011
                             December 31,
                             2012         2011         Change       Percent
                             (in millions, except per share data)
Consolidated Statement of
Operations Data:
Net sales                    $ 1,880.8   $ 1,062.2    $   818.6   77.1%
Cost of product sold         1,485.1      857.3        627.8         73.2
Direct operating expenses    202.5        124.8        77.7          62.3
Insurance recovery —         —            —            —             —
business interruption
Selling, general and         35.7         29.0         6.7           23.1
administrative expenses
Depreciation and             32.6         24.2         8.4           34.7
amortization
Operating income             124.9        26.9         98.0          364.3
Interest expense and other   (18.2)       (14.7)       (3.5)         23.8
financing costs
Gain (loss) on derivatives,
net
Realized                     (57.1)       11.1         (68.2)        (614.4)
Unrealized                   48.9         92.1         (43.2)        (46.9)
Loss on extinguishment of    (37.5)       —            (37.5)        —
debt
Other income, net            0.5          —            0.5           —
Income before income tax     61.5         115.4        (53.9)        (46.7)
expense
Income tax expense           16.7         37.1         (20.4)        (55.0)
Net income                   44.8         78.3         (33.5)        (42.8)
Net income attributable to   4.6          12.4         (7.8)         (62.9)
noncontrolling interest
Net income attributable to   $    40.2 $   65.9  $   (25.7) (39.0)%
CVR Energy stockholders
_______________
Basic earnings per share     $    0.46 $    0.76 $   (0.30) (39.5)%
Diluted earnings per share   $    0.46 $    0.75 $   (0.29) (38.7)%
Adjusted net income*         $   103.8  $    29.5 $    74.3  251.8%
Adjusted net income, per     $    1.20 $    0.34 $    0.86  252.9%
diluted share*
Weighted-average common
shares outstanding:
Basic                   86,831,050   86,582,800   248,250       0.3%
Diluted                 86,831,050   87,746,843   (915,793)     (1.0)%



                              Year Ended
                                                       Change from 2011
                              December 31,
                              2012        2011         Change     Percent
                              (in millions, except per share data)
Consolidated Statement of
Operations Data:
Net sales                     $ 8,567.3  $ 5,029.1   $ 3,538.2    70.4%
Cost of product sold          6,696.9     3,943.5      2,753.4       69.8
Direct operating expenses     522.1       334.1        188.0         56.3
Insurance recovery — business —           (3.4)        3.4           (100.0)
interruption
Selling, general and          183.4       98.0         85.4          87.1
administrative expenses
Depreciation and amortization 130.0       90.3         39.7          44.0
Operating income              1,034.9     566.6        468.3         82.7
Interest expense and other    (75.4)      (55.8)       (19.6)        35.1
financing costs
Gain (loss) on derivatives,
net
Realized                      (137.6)     (7.2)        (130.4)       1,811.1
Unrealized                    (148.0)     85.3         (233.3)       (273.5)
Loss on extinguishment of     (37.5)      (2.1)        (35.4)        1,685.7
debt
Other income, net             1.8         1.3          0.5           38.5
Income before income tax      638.2       588.1        50.1          8.5
expense
Income tax expense            225.6       209.5        16.1          7.7
Net income                    412.6       378.6        34.0          9.0
Net income attributable to    34.0        32.8         1.2           3.7
noncontrolling interest
Net income attributable to    $   378.6 $   345.8 $    32.8 9.5%
CVR Energy stockholders
_____________
Basic earnings per share      $ 4.36      $ 4.00       $ 0.36        9.0%
Diluted earnings per share    $ 4.33      $ 3.94       $ 0.39        9.9%
Adjusted net income*          $ 660.1     $ 345.7      $ 314.4       90.9%
Adjusted net income, per      $ 7.55      $ 3.94       $ 3.61        91.6%
diluted share*
Weighted-average common
shares outstanding:
 Basic                  86,822,913  86,493,735   329,178       0.4%
 Diluted                87,392,270  87,766,573   (374,303)     (0.4)%



                                      December 31,   December 31,
                                      2012           2011
                                      (in millions)
Balance Sheet Data:
Cash and cash equivalents             $ 896.0        $ 388.3
Working capital                       1,135.4        769.2
Total assets                          3,610.9        3,119.3
Total debt, including current portion 898.2          863.8
Total CVR stockholders' equity        1,525.2        1,151.6

                              Three Months Ended       Year Ended

                              December 31,             December 31,
                              2012        2011         2012        2011
                                          (in millions)
Cash Flow Data:
Net cash flow provided by
(used in):
Operating activities          $  (21.2) $   (67.4) $   762.6 $  278.6
Investing activities          (67.1)      (630.5)      (210.7)     (674.4)
Financing activities          (4.0)       187.8        (44.3)      584.1
Net cash flow                 $  (92.3) $  (510.1)  $   507.6 $  188.3
Other Financial Data:
Capital expenditures for      $ 67.1      $ 44.6       $ 212.2     $ 91.2
property, plant and equipment

Segment Information

Our operations are organized into two reportable segments, Petroleum and
Nitrogen Fertilizer. Our operations that are not included in the Petroleum and
Nitrogen Fertilizer segments are included in Corporate and Other segment
(along with elimination of intersegment transactions). The Petroleum segment
includes the operations of our Coffeyville, Kansas and Wynnewood, Oklahoma
refineries along with our crude oil gathering and pipeline systems. Effective
with its initial public offering on January 23, 2013, our Petroleum segment is
operated by CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as the general partner. The Nitrogen Fertilizer segment is
operated by CVR Partners, LP, ("CVR Partners") in which we own a majority
interest as well as the general partner. It consists of a nitrogen fertilizer
manufacturing facility that utilizes a pet coke gasification process in
producing nitrogen fertilizer. Detailed operating results for the Nitrogen
Fertilizer segment for the quarter ended December 31, 2012 are included in CVR
Partners' press release dated February 27, 2013.

The Petroleum segment, as reported herein, is not reflective of the full and
actual financial statements of CVR Refining as certain allocations that were
charged to CVR Refining were not made at the Petroleum segment. Beginning in
2013, the financial statements of the Petroleum segment will be the same as
CVR Refining's financial statements.

                                     Nitrogen       Corporate
                         Petroleum   Fertilizer                 Consolidated
                                                    and Other
                                     (CVR Partners)
                         (in millions)
Three months ended
December 31, 2012
Net sales                $         $         $      $   1,880.8
                         1,816.2    67.6           (3.0)
Cost of product sold     1,476.5     11.5           (2.9)       1,485.1
Direct operating         84.2        24.6           —           108.8
expenses (1)
Major scheduled          89.1        4.6            —           93.7
turnaround expense
Selling, general &       17.8        6.0            11.9        35.7
administrative
Depreciation and         27.3        4.9            0.4         32.6
amortization
Operating income (loss)  $       $         $      $    
                         121.3      16.0          (12.4)      124.9
Capital expenditures     $      $         $      $     
                         37.4       24.7           5.0      67.1
Year ended December 31,
2012
Net sales                $         $          $      $   8,567.3
                         8,281.5    302.3         (16.5)
Cost of product sold     6,667.3     46.1           (16.5)      6,696.9
Direct operating         302.8       90.8           —           393.6
expenses (1)
Major scheduled          123.7       4.8            —           128.5
turnaround expense
Selling, general &       67.6        24.1           91.7        183.4
administrative
Depreciation and         107.6       20.7           1.7         130.0
amortization
Operating income (loss)  $         $          $      $   1,034.9
                         1,012.5    115.8         (93.4)
Capital expenditures     $       $         $      $    
                         120.0      82.2          10.0       212.2



                                     Nitrogen       Corporate
                       Petroleum     Fertilizer                 Consolidated
                                                    and Other
                                     (CVR Partners)
                       (in millions)
Three months ended
December 31, 2011
Net sales              $         $        $      $   1,062.2
                       979.5        87.6            (4.9)
Cost of product sold   849.1         14.4           (6.2)       857.3
Direct operating       49.6          21.1           —           70.7
expenses (1)
Major scheduled        54.1          —              —           54.1
turnaround expense
Insurance recovery –   —             —              —           —
business interruption
Selling, general &     11.0          4.6            13.4        29.0
administrative
Depreciation and       19.0          4.9            0.3         24.2
amortization
Operating income       $       $        $      $     
(loss)                 (3.3)         42.6           (12.4)      26.9
Capital expenditures   $        $        $      $     
                       35.2          8.6           0.8      44.6
Year ended December
31, 2011
Net sales              $           $          $      $   5,029.1
                       4,751.8      302.9         (25.6)
Cost of product sold   3,926.6       42.5           (25.6)      3,943.5
Direct operating       181.3         86.5           (0.1)       267.7
expenses (1)
Major scheduled        66.4          —              —           66.4
turnaround expense
Insurance recovery –   —             (3.4)          —           (3.4)
business interruption
Selling, general &     41.9          22.2           33.9        98.0
administrative
Depreciation and       69.9          18.9           1.5         90.3
amortization
Operating income       $         $          $      $    
(loss)                 465.7        136.2         (35.3)      566.6
Capital expenditures   $        $        $      $     
                       68.6         19.1            3.5      91.2

(1) Excluding turnaround expenses.



                                       Nitrogen       Corporate
                         Petroleum     Fertilizer               Consolidated
                                                      and Other
                                       (CVR Partners)
                         (in millions)
December 31, 2012
Cash and cash            $         $          $      $    896.0
equivalents              148.1         127.8         620.1
Total assets             2,258.5       623.0          729.4     3,610.9
Total debt, including    552.3         125.0          220.9     898.2
current portion
December 31, 2011
Cash and cash            $       $          $      $    388.3
equivalents (2)          —             237.0         151.3
Total assets             2,322.1       659.3          137.9     3,119.3
Total debt, including    —             125.0          738.8     863.8
current portion

    Prior to December 2012, the Petroleum segment was part of a centralized
(2) approach to cash management. Accordingly, Corporate and Other is inclusive
    of the Petroleum segment's cash and cash equivalents and long-term debt as
    of December 31, 2011.



Petroleum Segment Operating Data
The following tables set forth information about our consolidated Petroleum
segment operations and our Coffeyville and Wynnewood refineries.
Reconciliations of certain non-GAAP financial measures are provided under "Use
of Non-GAAP Financial Measures" below.

                                Three Months Ended    Year Ended

                                December 31,          December 31,
                                2012        2011      2012        2011
                                (in millions, except operating statistics)
Petroleum Segment Summary
Financial Results:
Net sales                       $  1,816.2 $      $  8,281.5 $  
                                            979.5                4,751.8
Cost of product sold            1,476.5     849.1     6,667.3     3,926.6
Refining margin*                339.7       130.4     1,614.2     825.2
Direct operating expenses       84.2        49.6      302.8       181.3
Major scheduled turnaround      89.1        54.1      123.7       66.4
expense
Depreciation and amortization   27.3        19.0      107.6       69.9
Gross profit                    139.1       7.7       1,080.1     507.6
Selling, general and            17.8        11.0      67.6        41.9
administrative expenses
Operating income                $        $     $         $   
                                121.3      (3.3)    1,012.5     465.7
Refining margin adjusted for    $        $     $         $   
FIFO impact*                    352.6       95.3    1,672.6     799.6
Adjusted Petroleum EBITDA*      $        $     $         $   
                                198.2       47.6    1,178.9     580.9
Petroleum Segment Key Operating
Statistics:
Per crude oil throughput
barrel:
Refining margin*                $        $      $        $   
                                24.98      15.13    26.04      21.80
FIFO impact (favorable)         0.95        (4.08)    0.94        (0.68)
unfavorable
Refining margin adjusted for    25.93       11.05     26.98       21.12
FIFO impact*
Gross profit                    10.23       0.90      17.42       13.41
Direct operating expenses and
major scheduled turnaround      12.75       12.03     6.88        6.54
expenses
Direct operating expenses and   $        $      $      $     
major scheduled turnaround      11.29      12.53    6.26        6.38
expenses per barrel sold
Barrels sold (barrels per day)  166,842     89,953    186,035     106,397



                   Three Months Ended           Year Ended
                   December 31,                 December 31,
                   2012           2011          2012           2011
Petroleum Segment
Summary Refining
Throughput and
Production Data:
(barrels per day)
Throughput:
Sweet              112,113 68.9%  78,006 79.9%  130,414 72.4%  83,538  76.7%
Light/medium sour  20,508  12.6%  4,986  5.1%   21,334  11.8%  1,704   1.6%
Heavy sour         15,194  9.3%   10,713 11.0%  17,608  9.8%   18,460  16.9%
Total crude oil    147,815 90.8%  93,705 96.0%  169,356 94.0%  103,702 95.2%
throughput
All other
feedstocks and     14,788  9.2%   3,925  4.0%   10,791  6.0%   5,231   4.8%
blendstocks
Total throughput   162,603 100.0% 97,630 100.0% 180,147 100.0% 108,933 100.0%
Production:
Gasoline           82,855  50.6%  41,032 42.1%  89,787  49.9%  48,486  44.3%
Distillate         64,577  39.5%  40,095 41.1%  72,804  40.6%  45,535  41.6%
Other (excluding
internally         16,284  9.9%   16,410 16.8%  17,262  9.5%   15,385  14.1%
produced fuel)
Total refining
production
(excluding         163,716 100.0% 97,537 100.0% 179,853 100.0% 109,406 100.0%
internally
produced fuel)
Product price
(dollars per
gallon):
Gasoline           $ 2.62         $ 2.56        $ 2.86         $ 2.82
Distillate         3.13           2.98          3.08           3.03



                                        Three Months Ended  Year Ended

                                        December 31,        December 31,
                                        2012       2011     2012     2011
Market Indicators (dollars per barrel):
West Texas Intermediate (WTI) NYMEX     $  88.23 $ 94.06 $ 94.15 $ 95.11
Crude Oil Differentials:
WTI less WTS (light/medium sour)        9.29       0.84     5.40     2.06
WTI less WCS (heavy sour)               27.07      12.38    22.53    16.54
NYMEX Crack Spreads:
Gasoline                                26.63      16.03    28.55    23.54
Heating Oil                             40.00      30.96    32.94    29.12
NYMEX 2-1-1 Crack Spread                33.32      23.49    30.75    26.33
PADD II Group 3 Basis:
Gasoline                                (4.82)     (0.87)   (3.11)   (1.09)
Ultra Low Sulfur Diesel                 2.57       0.95     2.17     1.98
PADD II Group 3 Product Crack:
Gasoline                                21.82      15.16    25.45    22.44
Ultra Low Sulfur Diesel                 42.57      31.91    35.11    31.10
PADD II Group 3 2-1-1                   32.19      23.54    30.28    26.77



                              Three Months Ended      Year Ended

                              December 31,            December 31,
                              2012         2011       2012        2011
                              (in millions, except operating statistics)
Coffeyville Refinery
Financial Results:
Net sales                     $  1,548.6  $ 871.8   $  5,632.9 $  4,643.9
Cost of product sold          1,238.3      745.8      4,506.5     3,823.5
Refining margin*              310.3        126.0      1,126.4     820.4
Direct operating expenses     54.4         45.5       189.1       177.1
Major scheduled turnaround    —            54.1       21.2        66.4
expense
Depreciation and amortization 17.5         17.0       69.6        66.0
Gross profit                  $   238.4 $       $         $  
                                           9.4        846.5      510.9
Refining margin adjusted for  $   321.9 $   91.5 $  1,164.5 $  
FIFO impact*                                                      795.4
Coffeyville Refinery Key
Operating Statistics:
Per crude oil throughput
barrel:
Refining margin*              $   27.07 $ 16.80   $         $  
                                                      26.81      22.34
FIFO impact (favorable)       1.01         (4.61)     0.91        (0.68)
unfavorable
Refining margin adjusted for  28.08        12.19      27.72       21.66
FIFO impact*
Gross profit                  20.80        1.26       20.15       13.91
Direct operating expenses and
major scheduled turnaround    4.75         13.28      5.01        6.63
expense
Direct operating expenses and
major scheduled turnaround    $   4.20   $  13.84  $   4.52  $   6.45
expense per barrel sold
Barrels sold (barrels per     140,943      78,180     127,122     103,430
day)



                    Three Months Ended           Year Ended

                    December 31,                 December 31,
                    2012           2011          2012           2011
Coffeyville
Refinery Throughput
and Production
Data:
(barrels per day)
Throughput:
Sweet               93,692  67.5%  67,286 80.0%  91,580  74.3%  80,835  76.5%
Light/medium sour   15,684  11.3%  3,475  4.1%   5,601   4.6%   1,323   1.3%
Heavy sour          15,194  10.9%  10,713 12.7%  17,608  14.3%  18,460  17.5%
Total crude oil     124,570 89.7%  81,474 96.8%  114,789 93.2%  100,618 95.3%
throughput
All other
feedstocks and      14,259  10.3%  2,694  3.2%   8,412   6.8%   4,921   4.7%
blendstocks
Total throughput    138,829 100.0% 84,168 100.0% 123,201 100.0% 105,539 100.0%
Production:
     Gasoline       71,259  50.5%  33,975 40.2%  61,998  49.6%  46,707  44.0%
     Distillate     57,382  40.7%  35,646 42.2%  52,429  41.9%  44,414  41.9%
     Other
     (excluding
     internally     12,457  8.8%   14,885 17.6%  10,629  8.5%   15,000  14.1%
     produced

      fuel)
Total refining
production
(excluding          141,098 100.0% 84,506 100.0% 125,056 100.0% 106,121 100.0%

 internally
produced fuel)



                                         Three Months Ended  Year Ended

                                         December 31,2012   December 31,2012
                                         (in millions, except operating
                                         statistics)
Wynnewood Refinery Financial Results:
Net sales                                $      266.5   $    2,647.1
Cost of product sold                     236.4               2,160.9
Refining margin*                         30.1                486.2
Direct operating expenses                30.1                113.7
Major scheduled turnaround expense       89.1                102.5
Depreciation and amortization            8.8                 34.5
Gross profit (loss)                      $      (97.9) $      235.5
Refining margin adjusted for FIFO        $       31.5  $      506.5
impact*
Wynnewood Refinery Key Operating
Statistics:
Per crude oil throughput barrel:
Refining margin*                         $     14.04    $     24.34
FIFO impact (favorable) unfavorable      0.63                1.01
Refining margin adjusted for FIFO        14.67               25.35
impact*
Gross profit                             (45.81)             11.79
Direct operating expenses and major      55.76               10.83
scheduled turnaround expense
Direct operating expenses and major
scheduled turnaround expense per barrel  $     49.90    $      9.76
sold
Barrels sold (barrels per day)           25,974              60,496



                                          Three Months Ended Year Ended

                                          December 31, 2012  December 31, 2012
Wynnewood Refinery Throughput and
Production Data:
 (barrels per day)
Throughput:
Sweet                                     18,421    77.5%    38,834   68.2%
Light/medium sour                         4,824     20.3%    15,733   27.6%
Heavy sour                                —         — %     —        — %
Total crude oil throughput                23,245    97.8%    54,567   95.8%
All other feedstocks and blendstocks      529       2.2%     2,379    4.2%
Total throughput                          23,774    100.0%   56,946   100.0%
Production:
Gasoline                                  11,596    51.3%    27,789   50.6%
Distillate                                7,195     31.8%    20,375   37.2%
Other (excluding internally produced      3,827     16.9%    6,633    12.2%
fuel)
Total refining production (excluding      22,618    100.0%   54,797   100.0%
internally produced fuel)

Nitrogen Fertilizer Segment Operating Data

The following tables set forth information about the Nitrogen Fertilizer
segment operated by CVR Partners. Reconciliations of certain non-GAAP
financial measures are provided under "Use of Non-GAAP Financial Measures"
below. Additional discussion of operating results for the Nitrogen Fertilizer
segment for the quarter ended December 31, 2012 are included in CVR Partners'
press release dated February 27, 2013.

                                     Three Months Ended Year Ended

                                     December 31,       December 31,
                                     2012      2011     2012       2011
                                     (in millions, except as noted)
Nitrogen Fertilizer Segment
Financial Results:
Net sales                            $      $     $  302.3 $  302.9
                                     67.6      87.6
Cost of product sold                 11.5      14.4     46.1       42.5
Direct operating expenses            24.6      21.1     90.8       86.5
Major scheduled turnaround expense   4.6       —        4.8        —
Insurance recovery — business        —         —        —          (3.4)
interruption
Selling, general and administrative  6.0       4.6      24.1       22.2
expenses
Depreciation and amortization        4.9       4.9      20.7       18.9
Operating income                     $      $     $  115.8 $  136.2
                                     16.0      42.6
Adjusted Nitrogen Fertilizer EBITDA* $      $     $  148.2 $  162.6
                                     27.1      48.4



                                              Three Months Ended Year Ended

                                              December 31,       December 31,
                                              2012      2011     2012   2011
                                              (in millions, except as noted)
Nitrogen Fertilizer Segment Key Operating
Statistics:
Production (thousand tons):
Ammonia (gross produced) (1)                  87.7      100.8    390.0  411.2
Ammonia (net available for sale) (1)          35.3      27.5     124.6  116.8
UAN                                           127.3     178.3    643.8  714.1
Petroleum coke consumed (thousand tons)       109.7     126.3    487.3  517.3
Petroleum coke (cost per ton)                 $ 30     $ 42    $  33 $ 33
Sales (thousand tons):
Ammonia                                       38.4      29.3     127.8  112.8
UAN                                           133.0     184.6    643.5  709.3
Product pricing (plant gate) (dollars per
ton) (2):
Ammonia                                       $ 676     $ 606    $ 613  $ 579
UAN                                           $ 274     $ 334    $ 303  $ 284
On-stream factors (3):
Gasification                                  79.0%     97.6%    92.6%  99.0%
Ammonia                                       76.6%     97.1%    91.1%  97.7%
UAN                                           68.6%     94.1%    86.4%  95.5%
Market Indicators:
Ammonia — Southern Plains (dollars per ton)   $ 748     $ 651    $ 647  $ 619
UAN — Mid Cornbelt (dollars per ton)          $ 361     $ 400    $ 369  $ 379
_______________

Cost of product sold, direct operating expenses and selling, general and
administrative expenses are all reflected exclusive of depreciation and
amortization.
* See Use of Non-GAAP Financial Measures below.
    Gross tons produced for ammonia represent the total ammonia produced,
(1) including ammonia produced that was upgraded into UAN. The net tons
    available for sale represent the ammonia available for sale that was not
    upgraded into UAN.
    Plant gate sales per ton represent net sales less freight and hydrogen
(2) revenue divided by product sales volume in tons in the reporting period
    and is shown in order to provide a pricing measure that is comparable
    across the fertilizer industry.
    On-stream factor is the total number of hours operated divided by the
    total number of hours in the reporting period and is included as a measure
    of operating efficiency. Excluding the impact of the Linde air separation
    unit outage and the major scheduled turnaround, the on-stream factors for
(3) the three months ended December31, 2012 would have been 99.7% for
    gasifier, 98.8% for ammonia and 91.5% for UAN. Excluding the impact of the
    Linde air separation unit outage, the on-stream factors for the three
    months ended December31, 2011 would have been 97.6% for gasifier, 97.1%
    for ammonia and 94.1% for UAN.
    Excluding the impact of the Linde air separation unit outage and the major
    scheduled turnaround, the on-stream factors for the year ended
    December31, 2012 would have been 98.1% for gasifier, 97.1% for ammonia
    and 92.8% for UAN. Excluding the impact of the Linde air separation unit
    outage, the on-stream factors for the year ended December31, 2011 would
    have been 99.2% for gasifier, 98.0% for ammonia and 95.7% for UAN.

Use of Non-GAAP Financial Measures

To supplement the actual results in accordance with GAAP for the applicable
periods, the Company also uses non-GAAP measures as discussed below, which are
reconciled to GAAP-based results. These non-GAAP financial measures should not
be considered an alternative for GAAP results. The adjustments are provided to
enhance an overall understanding of the Company's financial performance for
the applicable periods and are indicators management believes are relevant and
useful for planning and forecasting future periods.

Adjusted net income is not a recognized term under GAAP and should not be
substituted for net income (loss)as a measure of our performance but rather
should be utilized as a supplemental measure of financial performance in
evaluating our business. Management believes that adjusted net income provides
relevant and useful information that enables external users of our financial
statements, such as industry analysts, investors, lenders and rating agencies
to better understand and evaluate our ongoing operating results and allow for
greater transparency in the review of our overall financial, operational and
economic performance.

                                  Three Months Ended      Year Ended

                                  December 31,            December 31,
                                  2012        2011        2012      2011
                                  (in millions, except per share data)
Reconciliation of Net Income to
Adjusted Net Income:
Net Income attributable to CVR    $      $      $      $   
Energy stockholders               40.2        65.9        378.6    345.8
Adjustments (all net of taxes):
FIFO impact (favorable)           7.9         (21.3)      35.5      (15.5)
unfavorable
Share-based compensation          6.2         2.1         22.5      18.6
Loss on extinguishment of debt    22.8        —           22.8      1.3
Major scheduled turnaround        56.1        32.8        77.2      40.2
expense
Loss on disposition of fixed      —           0.6         —         1.5
assets
Unrealized (gain) loss on         (29.8)      (55.8)      90.0      (51.7)
derivatives, net
Expenses associated with proxy    —           —           26.8      —
matters
Expenses associated with the      0.4         5.2         6.7       5.5
acquisition of Gary-Williams (1)
Adjusted net income               $        $       $      $   
                                  103.8      29.5        660.1    345.7
Adjusted net income per diluted   $       $       $     $    
share                             1.20        0.34        7.55      3.94

(1) Legal, professional and integration expenses related to the December 2011
    acquisition of Gary-Williams.

Refining margin per crude oil throughput barrel is a measurement calculated as
the difference between net sales and cost of product sold (exclusive of
depreciation and amortization). Refining margin is a non-GAAP measure that we
believe is important to investors in evaluating our refineries' performance as
a general indication of the amount above our cost of product sold that we are
able to sell refined products. Each of the components used in this calculation
(net sales and cost of product sold exclusive of depreciation and
amortization) can be taken directly from our Statement of Operations. Our
calculation of refining margin may differ from similar calculations of other
companies in our industry, thereby limiting its usefulness as a comparative
measure. In order to derive the refining margin per crude oil throughput
barrel, we utilize the total dollar figures for refining margin as derived
above and divide by the applicable number of crude oil throughput barrels for
the period. We believe that refining margin is important to enable investors
to better understand and evaluate our ongoing operating results and allow for
greater transparency in the review of our overall financial, operational and
economic performance.

Refining margin per crude oil throughput barrel adjusted for FIFO impact is a
measurement calculated as the difference between net sales and cost of product
sold (exclusive of depreciation and amortization) adjusted for FIFO impacts.
Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe
is important to investors in evaluating our refineries' performance as a
general indication of the amount above our cost of product sold (taking into
account the impact of our utilization of FIFO) that we are able to sell
refined products. Our calculation of refining margin adjusted for FIFO impact
may differ from calculations of other companies in our industry, thereby
limiting its usefulness as a comparative measure. Under our FIFO accounting
method, changes in crude oil prices can cause fluctuations in the inventory
valuation of our crude oil, work in process and finished goods, thereby
resulting in favorable FIFO impacts when crude oil prices increase and
unfavorable FIFO impacts when crude oil prices decrease.

Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents operating income
adjusted for FIFO impacts (favorable) unfavorable, share-based compensation,
major scheduled turnaround expenses, realized gain (loss) on derivatives, net,
loss on disposition of fixed assets, depreciation and amortization and other
income (expense). Adjusted EBITDA by operating segment is not a recognized
term under GAAP and should not be substituted for operating income as a
measure of performance but should be utilized as a supplemental measure of
performance in evaluating our business. Management believes that adjusted
EBITDA by operating segment provides relevant and useful information that
enables investors to better understand and evaluate our ongoing operating
results and allows for greater transparency in the reviewing of our overall
financial, operational and economic performance. Below is a reconciliation of
operating income to adjusted EBITDA for the petroleum and nitrogen fertilizer
segments for the three months and year ended December 31, 2012 and 2011:

                             Three Months Ended      Year Ended

                             December 31,            December 31,
                             2012       2011         2012          2011
                             (in millions)
Petroleum:
Petroleum operating income   $  121.3 $         $   1,012.5 $  465.7
                                        (3.3)
 FIFO impacts (favorable) 12.9       (35.1)       58.4          (25.6)
unfavorable
 Share-based compensation 4.7        0.7          13.5          8.7
 Major scheduled          89.1       54.1         123.7         66.4
turnaround expenses
 Loss on disposition of   —          1.0          —             2.5
fixed assets
 Realized gain (loss) on  (57.1)     11.1         (137.6)       (7.2)
derivatives, net
 Depreciation and         27.3       19.0         107.6         69.9
amortization
 Other income             —          0.1          0.8           0.5
Adjusted Petroleum EBITDA    $  198.2 $    47.6 $   1,178.9 $  580.9



                              Three Months Ended        Year Ended

                              December 31,              December 31,
                              2012         2011         2012       2011
                              (in millions)
Nitrogen Fertilizer:
Nitrogen Fertilizer operating $    16.0 $    42.6 $  115.8 $  136.2
income
 Share-based compensation  1.6          0.9          6.8        7.3
 Depreciation and          4.9          4.9          20.7       18.9
amortization
 Major scheduled           4.6          —            4.8        —
turnaround expense
 Other income, net         —            —            0.1        0.2
Adjusted Nitrogen Fertilizer  $    27.1 $    48.4 $  148.2 $  162.6
EBITDA

Derivatives Summary. To reduce the basis risk between the price of products
for Group 3 and that of the NYMEX associated with selling forward derivative
contracts for NYMEX crack spreads, we may enter into basis swap positions to
lock the price difference. If the difference between the price of products on
the NYMEX and Group 3 (or some other price benchmark as we may deem
appropriate) is different than the value contracted in the swap, then we will
receive from or owe to the counterparty the difference on each unit of product
contracted in the swap, thereby completing the locking of our margin. From
time to time our Petroleum segment holds various NYMEX positions through a
third-party clearing house. In addition, the Petroleum segment enters into
commodity swap contracts. The physical volumes are not exchanged and these
contracts are net settled with cash.

The table below summarizes our open commodity derivatives positions as of
December 31, 2012. The positions are primarily in the form of 'crack spread'
swap agreements with financial counterparties, wherein the Company will
receive the fixed prices noted below.

Commodity Swaps     Barrels    Fixed Price^(1)
First Quarter 2013  6,600,000  $ 25.02
Second Quarter 2013 5,850,000  27.25
Third Quarter 2013 5,625,000  25.89
Fourth Quarter 2013 4,875,000  26.98
First Quarter 2014 150,000    32.95
Second Quarter 2014 75,000     32.00
Third Quarter 2014  75,000     32.00
Fourth Quarter 2014 75,000     32.00
Total               23,325,000 $ 26.32

(1) Weighted-average price of all positions for period indicated.

SOURCE CVR Energy, Inc.

Website: http://www.cvrenergy.com