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CVR Energy Inc (CVI)
:CVI
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CVR Energy
(NYSE:CVI)
55Neutral
Positive Factors
Fertilizer Segment
The Fertilizer segment is expected to see sequentially higher EBITDA due to seasonal strength in ammonia.
Financial Performance
CVI posted a beat vs. lowered expectations for 4Q24, with particularly strong results in Renewables.
Liquidity
The company added ~$400mm in liquidity in December with a pipeline sale and a new term loan.
Negative Factors
Dividend Suspension
CVI suspended the quarterly dividend, noting the uncertainty on how long the current refining margin conditions will persist.
Operational Challenges
Unplanned downtime due to power outages at both the Coffeyville and Wynnewood refineries resulted in lower throughput volumes vs. guidance.
Refinery Turnaround
The large turnaround at Coffeyville will keep results subdued in the short term.
CVR Energy (CVI) vs. S&P 500 (SPY)
Market Cap
$1.77B
Dividend Yield12.39%
Average Volume (3M)1.14M
Price to Earnings (P/E)252.6
Beta (1Y)1.26
Revenue Growth-17.69%
EPS Growth-99.09%
CountryUS
Employees1,595
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.07
Shares Outstanding100,530,600
10 Day Avg. Volume1,042,086
30 Day Avg. Volume1,136,130
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)5.40
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.25Price Target Upside20.88% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering5
CVR Energy Business Overview & Revenue Model
Company DescriptionCVR Energy, Inc. is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries. Operating through its subsidiaries, CVR Refining and CVR Partners, the company focuses on producing high-quality refined products and nitrogen-based fertilizers. Headquartered in Sugar Land, Texas, CVR Energy's refining segment processes crude oil to produce gasoline, diesel fuel, and other petroleum-based products, while the fertilizer segment produces nitrogen fertilizers used in agriculture.
How the Company Makes MoneyCVR Energy generates revenue through two main segments: petroleum refining and nitrogen fertilizer manufacturing. In the petroleum refining segment, the company earns money by processing crude oil into refined products like gasoline, diesel, and jet fuel, which are then sold to wholesale distributors, retailers, and other end-users. Key factors contributing to the revenue in this segment include refining margins, crude oil price differentials, and operational efficiencies. In the nitrogen fertilizer segment, CVR Partners produces and sells ammonia and urea ammonium nitrate (UAN) fertilizers. Revenue in this segment is influenced by agricultural demand, fertilizer prices, and natural gas costs, as natural gas is a primary feedstock in fertilizer production. Strategic partnerships and market positioning also play a role in enhancing the company's revenue streams.
CVR Energy Financial Statement Overview
Summary
CVR Energy is facing significant challenges with declining revenues and profit margins, which have turned sharply negative or low, impacting overall profitability. However, the balance sheet is strengthened by the elimination of debt, although reduced cash flows indicate potential operational difficulties.Income Statement
The company experienced a significant decline in revenue from $9.25 billion in 2023 to $7.61 billion in TTM, indicating revenue contraction. Gross profit margin turned negative at -18.8% for TTM, a concerning indicator. Net profit margin plummeted to just 0.09% in TTM from 8.3% in 2023, showing profitability challenges. EBIT and EBITDA margins also decreased, highlighting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows improvement in leverage and liquidity. The company has cleared its total debt, resulting in a debt-to-equity ratio of 0, enhancing financial stability. Stockholders' equity ratio improved to 16.49% from 18.0% in 2023. However, the total assets have decreased, indicating possible asset reduction or write-offs.60
Neutral
Cash Flow
Operating cash flow decreased significantly from $948 million in 2023 to $306 million in TTM, indicating reduced cash generation from operations. The free cash flow also declined, but the company managed to maintain a positive free cash flow of $168 million. The ratio of operating cash flow to net income is robust but declined compared to previous periods.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.61B | 9.25B | 10.90B | 7.24B | 3.93B | Gross Profit |
| 197.00M | 1.27B | 1.13B | 218.00M | -189.00M | EBIT |
| 58.00M | 1.12B | 963.00M | 87.00M | -333.00M | EBITDA |
| 394.00M | 1.44B | 1.26B | 369.00M | -7.00M | Net Income Common Stockholders |
| 7.00M | 769.00M | 644.00M | 74.00M | -320.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 987.00M | 581.00M | 510.00M | 510.00M | 667.00M | Total Assets |
| 4.26B | 4.71B | 4.12B | 3.91B | 3.98B | Total Debt |
| 1.94B | 2.20B | 1.61B | 1.67B | 1.71B | Net Debt |
| 948.00M | 1.62B | 1.10B | 1.16B | 1.04B | Total Liabilities |
| 3.38B | 3.67B | 3.59B | 3.35B | 2.96B | Stockholders Equity |
| 703.00M | 847.00M | 531.00M | 553.00M | 1.02B |
| Cash Flow | Free Cash Flow | |||
| 172.00M | 686.00M | 693.00M | -159.00M | -193.00M | Operating Cash Flow |
| 404.00M | 948.00M | 967.00M | 90.00M | 90.00M | Investing Cash Flow |
| -121.00M | -239.00M | -271.00M | -423.00M | -423.00M | Financing Cash Flow |
| -482.00M | -40.00M | -696.00M | -315.00M | 355.00M |
CVR Energy Technical Analysis
Negative
17.58
Price Trends
19.11
Negative
19.14
Negative
21.44
Negative
Market Momentum
0.17
Positive
45.62
Neutral
8.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVI, the sentiment is Negative. The current price of 17.58 is below the 20-day moving average (MA) of 19.35, below the 50-day MA of 19.11, and below the 200-day MA of 21.44, indicating a bearish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVI.
CVR Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.08B | 8.82 | 28.38% | 6.97% | -1.63% | 80.11% | |
66 Neutral | $5.19B | 30.24 | 1.78% | 7.26% | -10.58% | -90.08% | |
59 Neutral | $33.54B | 12.44 | 10.86% | 4.13% | -10.37% | -65.69% | |
57 Neutral | $7.68B | 4.29 | -3.52% | 6.80% | -0.14% | -64.60% | |
55 Neutral | $1.77B | 252.59 | 0.90% | 12.39% | -17.69% | -99.09% | |
48 Neutral | $1.68B | ― | -8.87% | 7.31% | -13.59% | -127.47% | |
47 Neutral | $767.14M | ― | -108.21% | 8.79% | -28.68% | -4373.94% |
* Energy Sector Average
Performance Comparison
CVI
CVR Energy
17.58
-16.20
-47.96%
DK
Delek US Holdings
13.11
-16.79
-56.15%
DINO
HF Sinclair Corporation
28.61
-29.38
-50.66%
VLO
Valero Energy
115.90
-54.74
-32.08%
PBF
PBF Energy
16.42
-40.68
-71.24%
SUN
Sunoco
52.92
1.80
3.52%
CVR Energy Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -4.92% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with both positive and negative aspects. While the company reported solid financial performance and improvement in the renewables segment, challenges in the refining market and increased expenses presented significant headwinds. The company's liquidity position is strong, but uncertainties in government subsidies for the renewables segment pose risks.Highlights
Consolidated Financial Performance
For the full year of 2024, CVR Energy reported a consolidated net income of $45 million and an EBITDA of $394 million. The fourth quarter saw a consolidated net income of $40 million and an EBITDA of $122 million.
Renewables Segment Improvement
The Renewables segment reported an adjusted EBITDA of $9 million for the fourth quarter, a significant improvement from the fourth quarter of 2023, which had an adjusted EBITDA of negative $17 million.
Fertilizer Segment Performance
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 pet coke feedstock costs.
Increased Liquidity
Liquidity as of December 31st, excluding CVR Partners, was approximately $1.1 billion, significantly enhanced by net proceeds of $318 million from a term loan issuance and $90 million from the sale of a 50% interest in the Midway pipeline.
Cash Flow and Free Cash Flow
For the fourth quarter of 2024, cash flow from operations was $98 million and free cash flow was $40 million.
Lowlights
Challenges in the Refining Market
Refining market conditions were challenging in the fourth quarter due to an oversupply as a result of high utilization levels in the U.S. and new refined capacity globally.
Renewables Segment Capacity Reduction
The renewable diesel unit's rated capacity has been reduced from 100 million gallons to 80 million gallons per year due to catalyst limitations.
RINs Expense Impact
Net RINs expense for the fourth quarter, excluding the mark-to-market impact, was $56 million or $2.86 per barrel, negatively impacting the capture rate for the quarter by approximately 20%.
Increased Operating Expenses
Direct operating expenses in the petroleum segment were $5.10 per barrel for the fourth quarter, up from $4.69 per barrel in the fourth quarter of 2023, due to increased repair and maintenance expenses and lower throughput volumes.
Uncertain Returns on Renewables Investment
The renewables business faced uncertainties due to reliance on government subsidies, with current returns being breakeven at best.
Company Guidance
During the CVR Energy fourth quarter 2024 conference call held on February 19, 2025, the management provided detailed guidance on various financial metrics and operational plans for the upcoming period. The company reported a consolidated net income of $45 million for the full year of 2024, with an EBITDA of $394 million. The petroleum segment generated $223 million in EBITDA, while the fertilizer and renewables segments contributed $179 million and $3 million, respectively. For the fourth quarter, consolidated net income was $40 million and EBITDA was $122 million. Looking ahead to the first quarter of 2025, CVR Energy projected total throughput for the petroleum segment to range between 120,000 to 135,000 barrels per day, with direct operating expenses estimated at $95 to $105 million. Capital spending is expected to be between $30 and $40 million, with turnaround spending projected at $150 to $165 million. In the fertilizer segment, ammonia utilization is anticipated to be between 95% and 100%, with direct operating expenses forecasted at $55 to $65 million. The renewables segment is estimated to process between 13 million to 16 million gallons, with direct operating expenses of $8 to $10 million. CVR Energy emphasized its focus on deleveraging by aiming to reduce debt and restore the balance sheet to target levels, while also exploring potential investments in expanding jet fuel production and navigating the uncertainties in the renewables market.CVR Energy Corporate Events
Executive/Board Changes
CVR Energy Appoints New Board Members, Expands Board
Neutral
Apr 4, 2025
On March 31, 2025, CVR Energy appointed Robert E. Flint and Colin Kwak to its Board of Directors, with Flint becoming the Chairperson. Both are affiliated with Icahn Enterprises, which controls a majority stake in CVR Energy. Their appointments follow the resignation of Ted Papapostolou for personal reasons, not related to any company disagreements. The board expanded from seven to eight members, reflecting these changes.
Business Operations and Strategy
CVR Energy Unveils New Investor Presentation for 2025
Neutral
Mar 3, 2025
CVR Energy, Inc. announced that starting March 3, 2025, it will use a new Investor Presentation containing forward-looking statements in meetings with investors and analysts. This presentation aims to provide insights into the company’s future operations and strategic priorities, although it is not intended to be considered material or complete for investment decisions. The announcement highlights CVR Energy’s commitment to transparency with its stakeholders while cautioning against undue reliance on forward-looking statements due to inherent uncertainties.
Private Placements and FinancingFinancial Disclosures
CVR Energy Reports Decline in 2024 Financial Performance
Negative
Feb 18, 2025
CVR Energy reported a significant decline in its financial performance for the fourth quarter and the full year of 2024 compared to 2023, with net income attributable to stockholders dropping to $7 million for the year. The company enhanced its liquidity by $408 million in the fourth quarter through a Term Loan and the sale of its interest in Midway Pipeline. Despite facing challenges in the refining segment due to reduced crack spreads and throughput, the company anticipates improvement as the summer driving season approaches. The renewables segment showed improvements in EBITDA and margin due to lower feedstock costs and better operational efficiency, while the nitrogen fertilizer segment saw a decrease in net income and EBITDA compared to 2023.
Business Operations and Strategy
CVR Energy Initiates Turnaround at Coffeyville Refinery
Negative
Jan 24, 2025
On January 24, 2025, CVR Energy, Inc. announced the commencement of a planned turnaround at its Coffeyville, Kansas refinery following damage sustained to its Naphtha Hydrotreater due to freezing weather conditions on January 21, 2025. This turnaround may affect the company’s operations and stakeholders, with further updates expected during the next earnings conference call.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.