Strong Refinery and Fertilizer Utilization
Crude utilization of 97% of nameplate capacity and ammonia utilization of 103% in Q1 2026, with both plants running well and minimal downtime.
CVR Energy
· CVI
April 29th, 2026
Summary
- Earnings Call Date:
- 2026-04-29
- Change Since:
- -21.25%
- Next Earnings Date:
- 2026-08-03
Earnings Call Sentiment
NeutralThe call presents a balanced picture: operational execution was strong (high utilization rates, improved fertilizer results, reinstated dividend, solid liquidity) and market fundamentals have improved since the onset of geopolitical disruptions. However, Q1 GAAP results were materially negative due largely to large unrealized derivative losses, substantial RINs/RFS related expense and mark-to-market volatility in hedges, and a weakened Petroleum adjusted EBITDA. Management emphasizes these are largely timing/market-driven items and highlights deleveraging plans and capital returns, but near-term financials remain impacted by market and regulatory headwinds.
Company Guidance
Q2 guidance and capital-allocation targets: Petroleum throughput 200,000–215,000 bpd with Petroleum direct operating expenses $110–$120 million and Petroleum capex $35–$40 million; Fertilizer ammonia utilization 95%–100% with Fertilizer direct operating expenses (ex inventory/turnaround) $57–$62 million and Fertilizer capex $28–$32 million; full‑year consolidated capex $200–$240 million. Other key metrics discussed: consolidated cash $512 million at quarter end, total liquidity (ex‑CVR Partners) ~ $923 million (≈$384M cash + $539M ABL availability), Q1 cash flow from operations $64 million and free cash flow $21 million, Q1 dividend of $0.10 per share, CVR Partners declared $4.00/unit (CVR Energy’s share ≈$16M), and a gross leverage target of $1.0 billion (excluding CVR Partners).
Fertilizer Segment EBITDA Improvement
Adjusted EBITDA in the Fertilizer segment was $78 million in Q1 2026 versus $53 million in Q1 2025, an increase of approximately 47% driven by high ammonia utilization and tight market fundamentals.
Dividend Reinstated
Company announced a Q1 2026 dividend of $0.10 per share and indicated the dividend is not intended to be variable, signaling capacity for capital returns alongside deleveraging.
Strong Liquidity Position
Consolidated cash balance of $512 million at quarter end and total liquidity (excluding CVR Partners) of approximately $923 million (comprised of $384 million cash and $539 million ABL availability).
Adjusted Consolidated Performance (Excluding Significant Items)
Excluding unrealized derivative losses, RFS liability changes, and inventory valuation impacts, adjusted consolidated EBITDA was $37 million and adjusted loss per share was $1.24.
Improved Unit Costs in Petroleum
Direct operating expenses in the Petroleum segment decreased to $6.10 per barrel in Q1 2026 from $8.58 per barrel in Q1 2025, a decline of ~29%, primarily due to higher throughput (Coffeyville turnaround in 2025).
Positive Market Dynamics and Pricing
Group 3 2-1-1 benchmark cracks averaged $21.58/bbl in Q1 2026 (up ~22% from $17.65/bbl in Q1 2025). Quarter-to-date Q2 cracks averaged $38.36/bbl. Prompt fertilizer prices cited at $950/ton (ammonia) and $525/ton (UAN).
Cash Generation from Fertilizer and Distribution Received
Cash flow from operations was $64 million and free cash flow was $21 million in Q1; approximately $63 million of the quarter's free cash flow was generated by the Fertilizer segment. CVR Partners declared a $4.00/unit distribution for Q1, yielding about $16 million to CVR Energy (37% ownership).
Operator
Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the first quarter 2026 CVR Energy, Inc. earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please press star then the number 1 on your telephone keypad. To withdraw your question, press star 1 again.
We ask that you please limit your questions to one and one follow-up. I would now like to turn the conference over to Richard Roberts, Vice President of FP&A and Investor Relations. Please go ahead.
Richard Roberts
Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CVR Energy, Inc. first quarter 2026 earnings call. With me today are Mark Pytosh, our Chief Executive Officer; Dane Neumann, our Chief Financial Officer; Mike Wright, our Chief Operating Officer; Travis Katz, our Chief Commercial Officer; and other members of management. Before discussing our first quarter 2026 results, let me remind you that this conference call may contain forward-looking statements as that term is defined under federal securities laws. For this purpose, statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements. You are cautioned that these statements may be affected by important factors set forth in our filings with the Securities and Exchange Commission and in our latest earnings release. As a...
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