Cvr Refining, Lp (CVRR) 10-Q Quarterly Report July 2018

- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $118 million on net sales of $1,824 million for the second quarter of 2018, compared to a net loss of $19 million on net sales of $1,338 million for the second quarter of 2017. Adjusted EBITDA, a non-GAAP financial measure, for the 2018 second quarter was $147 million compared to adjusted EBITDA of $43 million for the 2017 second quarter.

For the first six months of 2018, net income was $265 million on net sales of $3,282 million, compared to net income of $48 million on net sales of $2,762 million for the comparable period a year earlier. Adjusted EBITDA for the first six months of 2018 was $273 million, compared to adjusted EBITDA of $158 million for the first six months of 2017.

“CVR Refining reported another period of solid results for the 2018 second quarter,” said Dave Lamp, Chief Executive Officer of CVR Refining's general partner. “The quarter’s success was attributable to a $4.88 increase in Group 3 crack spreads, low Renewable Identification Number (RIN) prices and wide crude oil differentials compared to the same period last year.

“Looking ahead, CVR Refining is off to a good start in the third quarter,” Lamp said. "While crack spreads have moderated in July, crude oil differentials are strong and RIN prices remain low."

Consolidated Operations

Second quarter 2018 combined crude oil throughput was approximately 206,000 barrels per day (bpd). Combined crude oil throughput was approximately 214,000 bpd for the same period in 2017.

Refining margin adjusted for FIFO impact per combined total throughput, a non-GAAP financial measure, was $12.61 in the 2018 second quarter, compared to $7.21 during the same period in 2017. Direct operating expenses (exclusive of depreciation and amortization), excluding major scheduled turnaround expenses, per combined total throughput, for the 2018 second quarter were $4.76, compared to $4.13 in the second quarter of 2017.

Distributions

CVR Refining also announced today a second quarter 2018 distribution of 66 cents per common unit. The distribution, as set by the board of CVR Refining GP, LLC, the general partner of CVR Refining, will be paid on Aug. 13, 2018, to unitholders of record on Aug. 6, 2018. CVR Refining's second quarter cash distribution brings the cumulative cash distributions paid or declared for the first six months of 2018 to $1.17 per common unit.

CVR Refining is a variable distribution master limited partnership. As a result, its distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, RINs’ costs and cash reserves deemed necessary or appropriate by the board of directors of its general partner.

The following information was filed by Cvr Refining, Lp (CVRR) on Wednesday, July 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Cvr Refining, Lp's 10-Q Quarterly Report:

Financial - Expense Highlight
Adjusted EBITDA is a performance measure representing EBITDA adjusted for i favorable unfavorable FIFO impacts associated with our crude oil and refined product inventories, ii major turnaround expenses that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA, iii gain loss on derivatives, net and iv current period settlements on derivative contracts.

Financial - Earnings Highlight
Refining margin was negatively impacted by an increase in cost of materials and other, of $362 million, or 15.0%, which was primarily the result of increases in the cost of consumed crude oil and refined products purchased for resale partially offset by decreases in the cost of other feedstocks and RINs.
Financial - Earnings Highlight
Refining margin was negatively impacted by an increase in cost of material and other of $345 million, or 28.6%, which was primarily the result of increases in the cost of consumed crude oil, feedstocks, and refined products purchased for resale.
Financial - Earnings Highlight
For the three months ended June 30, 2018 our refining margin was $271 million, as compared to $130 million for the three months ended June 30, 2017 primarily due to the higher crack spreads experienced in the second quarter of 2018 compared to the same period in 2017.
Financial - Earnings Highlight
For the six months ended June 30, 2018 our refining margin was $511 million, as compared to $353 million for the six months ended June 30, 2017 primarily due to the higher crack spreads experienced in the second quarter of 2018 compared to the same period in 2017.
Financial - Cash Flow
The positive cash flow from...Read more
Other - Other
Net increase in cash and...Read more
Financial - Earnings
Refining margin per barrel of...Read more
Financial - Earnings
Refining margin per barrel of...Read more
Other - Other
For the three months ended...Read more
Other - Other
For the six months ended...Read more
Other - Other
FIFO impact, favorable unfavorablea...Read more
Other - Other
These measures should not be...Read more
Financial - Shares / Equity
On June 18, 2018, CVR...Read more
Financial - Expense
For example, we may experience...Read more
Financial - Debt
As a result, we will...Read more
Financial - Expense
The increase in cost of...Read more
Revenue - Product
Our crude oil throughput volume...Read more
Financial - Expense
Crude oil costs and the...Read more
Revenue - Product
This change was primarily due...Read more
Revenue - Product
This change was primarily due...Read more
Financial - Cash Flow
Cash flows related to investing...Read more
Other - Other
Gain on Derivatives, net....Read more
Other - Other
For the three months ended...Read more
Other - Other
For the six months ended...Read more
Other - Other
Additionally, the market fluctuations associated...Read more
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Additionally, the market fluctuations associated...Read more
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any other statements preceded by,...Read more
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We use the following performance...Read more
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Reconciliation of Adjusted EBITDA to...Read more
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Represents the portion of gain...Read more
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costs of compliance with existing,...Read more
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The NYMEX 2-1-1 crack spread...Read more
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The NYMEX 2-1-1 crack spread...Read more
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statements, other than statements of...Read more
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the risk of a substantial...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Cvr Refining, Lp provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.3: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: CVRR
CIK: 1558785
Form Type: 10-Q Quarterly Report
Accession Number: 0001558785-18-000048
Submitted to the SEC: Thu Jul 26 2018 5:02:26 PM EST
Accepted by the SEC: Thu Jul 26 2018
Period: Saturday, June 30, 2018
Industry: Petroleum Refining