CVR Energy Inc (CVI) 2024 Q4 法說會逐字稿

Greetings and welcome to the CVR Energy fourth-quarter 2024 conference call. (Operator Instructions) As a reminder, this conference is being recorded.

問候並歡迎參加 CVR Energy 2024 年第四季電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Richard Roberts, Vice President of Financial Planning and Analysis and Investor Relations. Thank you, sir. You may begin.

現在我很高興介紹您的主持人，財務規劃和分析及投資者關係副總裁理查德·羅伯茨 (Richard Roberts)。謝謝您，先生。你可以開始了。

Thank you, Christine. Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CVR Energy fourth-quarter 2024 earnings call. With me today are Dave Lamp, our Chief Executive Officer; Dane Neumann, our Chief Financial Officer; and other members of management.

謝謝你，克里斯汀。大家下午好。非常感謝您今天下午參加我們的 CVR Energy 2024 年第四季財報電話會議。今天和我一起的是我們的執行長戴夫·蘭普 (Dave Lamp)；我們的財務長 Dane Neumann；以及其他管理成員。

Prior to discussing our 2024 fourth-quarter and full-year 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, any statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements.

在討論我們 2024 年第四季和全年業績之前，請允許我提醒您，本次電話會議可能包含前瞻性陳述，該術語根據聯邦證券法定義。為此目的，本次電話會議中所做的任何非歷史事實陳述均可視為前瞻性陳述。

You were cautioned that these statements may be affected by important factors set forth in our filings of the Securities and Exchange Commission and in our latest earnings release. As a result, actual operations or results may differ materially from the results discussed in the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except to the extent required by law.

請注意，這些聲明可能會受到我們提交給美國證券交易委員會的文件和最新收益報告中所列的重要因素的影響。因此，實際營運或結果可能與前瞻性陳述中討論的結果有重大差異。我們不承擔公開更新任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因，除非法律要求。

This call also includes various non-GAAP financial measures. Disclosures related to such non-GAAP measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2024 fourth-quarter earnings release that we filed with the SEC and Form 10-K for the period and will be discussed during the call.

本次電話會議也包括各種非公認會計準則財務指標。與此類非 GAAP 指標相關的揭露（包括與最直接可比較的 GAAP 財務指標的調整）都包含在我們向 SEC 提交的 2024 年第四季度收益報告和該期間的 10-K 表中，並將在電話會議中討論。

With that said, I'll turn the call over to Dave.

說完這些，我會把電話轉給戴夫。

Thank you, Richard. Good afternoon, everyone, and thank you for joining our earnings call.

謝謝你，理查。大家下午好，感謝大家參加我們的財報電話會議。

For the full year of 2024, we reported a consolidated net income of $45 million and an EBITDA of $394 million. At the segment level, we generated $223 million of EBITDA in our petroleum segment, $179 million of EBITDA in our fertilizer segment. We also began separately reporting results from our renewable segment which generated $3 million of EBITDA for the full year of 2024.

2024 年全年，我們報告的綜合淨收入為 4,500 萬美元，EBITDA 為 3.94 億美元。在分部層面，我們的石油分部創造了 2.23 億美元的 EBITDA，化肥分部創造了 1.79 億美元的 EBITDA。我們也開始單獨報告再生能源部門的業績，該部門在 2024 年全年創造了 300 萬美元的 EBITDA。

For the fourth quarter, consolidated net income was $40 million and EBITDA was $122 million. In the petroleum segment, combined total throughput for the fourth quarter of 2024 was approximately 214,000 barrels per day. Crude utilization for the quarter was approximately 94% of nameplate capacity despite planned run cuts in December, and light product yield was 103.0% on crude oil processed.

第四季度，綜合淨收入為 4,000 萬美元，EBITDA 為 1.22 億美元。在石油領域，2024 年第四季的總吞吐量約為每天 21.4 萬桶。儘管 12 月計劃減產，但本季原油利用率仍約為額定產能的 94%，原油加工輕質產品收率為 103.0%。

Benchmark cracks softened during the fourth quarter with Group 3 2-1-1 averaging $14.32 per barrel. The bulk of the decrease came -- from the third quarter came from a decline in gasoline crack, which is somewhat typical for the fourth quarter as demand slows seasonally and supply increases with the addition of butane blending.

第四季基準裂解價差有所走軟，第 3 組 2-1-1 平均每桶 14.32 美元。從第三季開始，降幅主要源自於汽油裂解價差的下降，這在第四季頗為典型，因為需求會因季節性因素放緩，而供應會隨著丁烷混合而增加。

In addition, the US refining fleet continued to run hard through the fourth quarter, averaging 91% utilization, compared to a five-year average of 87%. Rent prices increased $0.17 per barrel from the third quarter of 2024 levels, averaging approximately $4.06 per barrel for the quarter.

此外，美國煉油廠第四季持續保持強勁運轉，平均利用率為 91%，而五年平均利用率為 87%。租金價格較 2024 年第三季的水平每桶上漲 0.17 美元，本季平均約為每桶 4.06 美元。

In early January, EPA denied Wynnewood's 2023 small refinery exemption petition, once again coming up with new reasons for the denial that we consider ludicrous and illegal, forcing us once again to seek protection of the 5th Circuit through a stay. Our 2024 application for small refinery exemption is already filed, and EPA again missed the 90-day deadline to rule on it.

1 月初，EPA 駁回了 Wynnewood 的 2023 年小型煉油廠豁免申請，並再次提出了我們認為荒謬且非法的拒絕理由，迫使我們再次透過暫緩執行的方式尋求第五巡迴法院的保護。我們已經提交了 2024 年小型煉油廠豁免申請，但 EPA 再次錯過了 90 天的裁決期限。

We are pleased to report that last week, EPA advised the 5th Circuit that EPA does not oppose the stay when he would request it. While the 5th Circuit has not yet ruled on our now unopposed motion to stay, we expect them to do so soon.

我們很高興地報告，上週，EPA 通知第五巡迴法院，EPA 不會反對他提出的暫緩請求。儘管第五巡迴法院尚未對我們目前不受反對的中止動議作出裁決，但我們預計他們很快就會作出裁決。

While we continue to aggressively pursue the small refinery exemptions Wynnewood deserves, we are hopeful that EPA's 5th Circuit filings last week signals a return to common sense to the agency. We welcome Administrator Zeldin to the EPA, and we're hopeful that under the new administration, EPA will see the critical role that small refineries like ours play in rural communities across America, exactly why Congress included small refinery exemptions in the renewable fuel standard legislation.

在我們繼續積極爭取 Wynnewood 應得的小型煉油廠豁免權的同時，我們希望 EPA 上週向第五巡迴法院提交的文件標誌著該機構恢復常識。我們歡迎澤爾丁署長加入環保署，我們希望在新政府的領導下，環保署將看到像我們這樣的小型煉油廠在美國各地農村社區發揮的關鍵作用，這正是國會在可再生燃料標準立法中納入小型煉油廠豁免的原因。

For the fourth quarter of 2024, we processed approximately 17 million gallons of vegetable oil feedstock in the renewable diesel unit at Wynnewood. Gross margin was approximately $0.79 per gallon for the fourth quarter and $0.80 per gallon for the full year of 2024.

2024 年第四季度，我們在 Wynnewood 的再生柴油裝置中加工了約 1,700 萬加侖的植物油原料。第四季毛利率約為每加侖 0.79 美元，2024 年全年毛利率約為每加侖 0.80 美元。

Although we have a hydraulic capacity to produce 100 million gallons of renewable diesel, we are reducing the rated capacity of the unit to 80 million gallons per year going forward due to catalyst limitations. Based on the revised capacity, utilization for the quarter was approximately 73%, which was negatively impacted by catalyst segregation in December.

儘管我們的液壓能力可以生產 1 億加侖的可再生柴油，但由於催化劑的限制，我們將在未來將該裝置的額定產能降低至每年 8000 萬加侖。根據修訂後的產能，本季的利用率約為 73%，受到 12 月催化劑分離的負面影響。

The HOBO spread declined slightly from the third quarter, primarily due to declines in California diesel prices. However, this was more than offset by increased D4s and LCFS credit prices.

HOBO 價差較第三季略有下降，主要原因是加州柴油價格下降。然而，D4s 和 LCFS 信貸價格的上漲足以抵消這一影響。

In the fertilizer segment, both facilities ran well during the quarter with ammonia utilization of 96%. Relative to the prior period, ammonia prices were higher despite some challenging weather conditions in the quarter. We saw good demand and had strong shipments from our facilities.

在化肥領域，兩家工廠本季運作良好，氨的利用率達到 96%。與上一季相比，儘管本季天氣條件有些嚴峻，但氨價格仍然上漲。我們看到了良好的需求，我們的工廠出貨量強勁。

Now, let me turn the call over to Dane to discuss our financial highlights.

現在，讓我將電話轉給丹恩，討論我們的財務亮點。

Thank you, Dave, and good afternoon, everyone.

謝謝你，戴夫，大家下午好。

For the fourth quarter of 2024, our net income attributable to CVR shareholders was $28 million. Earnings per share was $0.28, and EBITDA was $122 million. Our fourth-quarter results include a reduction of quarterly RINs expense due to a mark-to-market impact on our estimated outstanding RFS obligation of $57 million, a gain on the sale of our interest in the midway pipeline of $24 million, an unfavorable inventory evaluation impact of $20 million, and unrealized derivative losses of $6 million.

2024 年第四季度，歸屬於 CVR 股東的淨收入為 2,800 萬美元。每股收益為 0.28 美元，EBITDA 為 1.22 億美元。我們第四季的業績包括季度 RIN 費用的減少，這是由於以市價計價對我們估計的未償還 RFS 債務的影響為 5700 萬美元，出售我們在中途管道中的權益的收益為 2400 萬美元，不利的庫存評估影響為 2000 萬美元，以及未實現衍生品損失為 600 萬美元。

Excluding the above-mentioned items, adjusted EBITDA for the quarter was $67 million and adjusted losses per share were $0.13. Adjusted EBITDA on the petroleum segment was $9 million for the fourth quarter, with lower crack spreads driving the majority of the decline from the prior-year period.

除上述項目外，本季調整後的 EBITDA 為 6,700 萬美元，調整後每股虧損為 0.13 美元。第四季石油部門的調整後 EBITDA 為 900 萬美元，其中裂解價差下降是導致年減的主要原因。

Our fourth-quarter realized margin, adjusted for win mark-to-market impacts, inventory evaluation, and unrealized derivative losses was $6.45 per barrel, representing a 45% cap rate on the Group 3 2-1-1 benchmark. Net RINs expense for the quarter, excluding the mark-to-market impact was $56 million or $2.86 per barrel, which negatively impacted our capture rate for the quarter by approximately 20%.

我們第四季的實現利潤（經市價影響、庫存評估和未實現衍生性商品損失調整後）為每桶 6.45 美元，相當於第 3 組 2-1-1 基準的 45% 資本化率。本季的淨 RIN 費用（不包括以市價計算的影響）為 5,600 萬美元或每桶 2.86 美元，這對我們本季的捕獲率產生了約 20% 的負面影響。

The estimated accrued RFS obligation on the balance sheet was $323 million at December 31, representing $487 million RINs mark-to-market at an average price of $0.66. This is down slightly from the RFS obligation on the balance sheet at the end of 2023 of $329 million comprised of$ 362 million RINs marked at an average price of $0.91. As a reminder, our estimated outstanding RIN obligation is primarily related to RIN obligations for 2020 through 2024 and excludes the impact of any small refinery exemptions.

截至 12 月 31 日，資產負債表上估計應計 RFS 債務為 3.23 億美元，相當於 4.87 億美元的 RIN 以市價計價，平均價格為 0.66 美元。這略低於 2023 年底資產負債表上的 3.29 億美元的 RFS 義務，其中包括 3.62 億美元的 RIN，平均價格為 0.91 美元。提醒一下，我們估計的未償還 RIN 義務主要與 2020 年至 2024 年的 RIN 義務有關，不包括任何小型煉油廠豁免的影響。

Direct operating expenses in the petroleum segment were $5.13 per barrel for the fourth quarter compared to $4.69 per barrel in the fourth quarter of 2023. The increase in direct operating expenses per barrel was primarily due to increased repair and maintenance expenses in addition to lower throughput volumes compared to the prior-year period.

第四季石油部門的直接營運費用為每桶 5.13 美元，而 2023 年第四季為每桶 4.69 美元。每桶直接營運費用的增加主要是由於維修和維護費用的增加以及產量與去年同期相比有所下降。

Adjusted EBITDA on the renewable segment was $9 million for the fourth quarter, a significant improvement from our fourth quarter 2023 adjusted EBITDA of negative $17 million. The increase in adjusted EBITDA was driven by a combination of an improved HOBO spread and reduced feedstock basis due in part to the addition of the pre-treatment unit in 2024, enabling the processing of cheaper untreated feedstocks.

第四季再生能源部門的調整後 EBITDA 為 900 萬美元，較 2023 年第四季調整後 EBITDA 負 1,700 萬美元有顯著改善。調整後 EBITDA 的成長主要是由於 HOBO 價差改善和原料基礎減少等因素共同推動，部分原因是 2024 年增加了預處理裝置，從而能夠處理更便宜的未處理原料。

Adjusted EBITDA on the fertilizer segment was $50 million for the fourth quarter with increased ammonia sales prices, lower pet coke feedstock costs, and lower direct operating expenses driving the improvement relative to the prior-year period.

第四季化肥部門的調整後 EBITDA 為 5,000 萬美元，其中氨銷售價格上漲、石油焦原料成本下降以及直接營運費用下降推動了與去年同期相比的改善。

The Board of Directors of CVR Partners' general partner declared a distribution of $1.75 per common unit for the fourth quarter of 2024. As CVR Energy owns approximately 37% of CVR Partners' common units, we'll receive a proportionate cash distribution of approximately $7 million.

CVR Partners 普通合夥人董事會宣布 2024 年第四季每股普通股分配 1.75 美元。由於 CVR Energy 擁有 CVR Partners 約 37% 的普通股，我們將獲得約 700 萬美元的比例現金分配。

Cash flow from operations for the fourth quarter of 2024 was $98 million and free cash flow was $40 million. Our fourth-quarter cash flow from operations includes a working capital benefit of approximately $80 million excluding rent obligation changes and the gain on the sale of our interest in the midway pipeline. The working capital benefit was primarily attributed to increased lease crude payables.

2024 年第四季的經營現金流為 9,800 萬美元，自由現金流為 4,000 萬美元。我們第四季的營運現金流包括約 8,000 萬美元的營運資本利得（不包括租金義務變動和出售中途管道權益的收益）。營運資金收益主要歸因於租賃原油應付款項的增加。

Significant uses of cash in the quarter included $62 million of capital and turnaround spending, $18 million of cash interest, and $7 million for the non-controlling interest portion of the CVR Partners' third-quarter distribution. Total consolidated capital spending for the full year 2024 was $181 million, which included $128 million in the petroleum segment, $37 million in the fertilizer segment, and $11 million in the renewable segment.

本季現金的主要用途包括 6,200 萬美元的資本和扭虧為盈支出、1,800 萬美元的現金利息、以及 700 萬美元的 CVR Partners 第三季分配的非控股權益部分。2024 年全年總綜合資本支出為 1.81 億美元，其中包括石油部門 1.28 億美元、化肥部門 3,700 萬美元和再生能源部門 1,100 萬美元。

Turnaround spending was approximately $58 million in 2024. For the full year 2025, we estimate total consolidated capital spending to be approximately $165 million to $205 million and turnaround spending to be approximately $170 million to $185 million.

2024 年的扭虧為盈支出約 5,800 萬美元。就 2025 年全年而言，我們預計總合併資本支出約為 1.65 億至 2.05 億美元，扭虧為盈支出約為 1.7 億至 1.85 億美元。

Turning to the balance sheet, we ended the quarter with a consolidated cash balance of $987 million, which includes $91 million of cash in the fertilizer segment. During the quarter, we completed two transactions that significantly increased our liquidity, generating $318 million of net proceeds from the term loan issuance, and $90 million of gross proceeds from the sale of our 50% interest in the midway pipeline.

談到資產負債表，我們本季末的綜合現金餘額為 9.87 億美元，其中包括化肥部門的 9,100 萬美元現金。在本季度，我們完成了兩筆交易，大大提高了我們的流動性，從定期貸款發放中獲得了 3.18 億美元的淨收益，從出售我們在中途管道 50% 的權益中獲得了 9000 萬美元的總收益。

Total liquidity as of December 31 excluding CBR Partners was approximately $1.1 billion, which was comprised primarily of $896 million of cash and availability under the EBL facility of $238 million.

截至 12 月 31 日（不包括 CBR Partners）的總流動資金約為 11 億美元，主要包括 8.96 億美元的現金和 2.38 億美元的 EBL 融資項下的可用資金。

With the actions taken during the fourth quarter to increase our liquidity position, we feel confident in our ability to manage through the large turnaround underway at Coffeyville and the potential for continued near term weakness in the refining market. We do not anticipate the term loan remaining a part of our long-term leverage profile, and we would anticipate working to return to our leverage target of approximately 2 times to 2.5 times mid-cycle EBITDA on a gross basis as market conditions permit.

透過第四季採取的增加流動性狀況的行動，我們有信心能夠應對科菲維爾正在經歷的大規模轉變以及煉油市場短期內持續疲軟的可能性。我們預計定期貸款不會成為我們長期槓桿率的一部分，我們預計將在市場條件允許的情況下努力將槓桿率恢復到中期週期 EBITDA 總額的約 2 倍至 2.5 倍的目標。

Looking ahead to the first quarter of 2025 for our petroleum segment, we estimate total throughput to be approximately 120,000 to 135,000 barrels per day, which will be impacted by the planned turnaround of Coffeyville in the quarter. We estimate direct operating expenses to range between $95 million and $105 million. total capital spending to be between $30 million and $40 million, and turnaround spending to be between $150 million and $165 million.

展望 2025 年第一季度，我們石油部門預計總吞吐量約為每天 120,000 至 135,000 桶，這將受到本季度 Coffeyville 計劃扭轉的影響。我們估計直接營運費用在 9,500 萬美元至 1.05 億美元之間。總資本支出在 3,000 萬美元至 4,000 萬美元之間，而周轉支出在 1.5 億美元至 1.65 億美元之間。

For the fertilizer segment, we estimate our first quarter of 2025 ammonia utilization rate to be between 95% and 100%. We estimate direct operating expenses to be approximately $55 million to $65 million excluding inventory impacts and total capital spending to be between $12 million and $16 million.

對於化肥領域，我們預計 2025 年第一季的氨利用率將在 95% 至 100% 之間。我們估計直接營運費用約為 5,500 萬至 6,500 萬美元（不含庫存影響），總資本支出在 1,200 萬至 1,600 萬美元之間。

For the renewable segment, we estimate first quarter of 2025 total throughput to be approximately 13 million to 16 million gallons, which will be impacted by a catalyst change completed in January. We estimate direct operating expenses to be between $8 million and $10 million and total capital spending to be between $2 million and $5 million.

對於再生能源領域，我們估計 2025 年第一季的總產量約為 1,300 萬至 1,600 萬加侖，這將受到 1 月完成的催化劑更換的影響。我們估計直接營運費用在 800 萬至 1000 萬美元之間，總資本支出在 200 萬至 500 萬美元之間。

With that, Dave, I will turn it back over to you.

說完這些，戴夫，我會把話題轉回給你。

Thanks, Dane.

謝謝，丹恩。

Refining market conditions remain challenging in the fourth quarter, largely due to the market being oversupplied as a result of above average utilization levels in the United States as well as the addition of new refining capacity globally. As we look to 2025, however, we are cautiously optimistic that refining market conditions will improve relative to 2024 for a number of reasons.

第四季煉油市場狀況依然嚴峻，主要原因是美國的產能利用率高於平均水平，以及全球新增煉油能力，導致市場供應過剩。然而，展望 2025 年，我們謹慎樂觀地認為，由於多種原因，煉油市場狀況將相對於 2024 年有所改善。

Looking at the US supply and demand balance, we are starting 2025 in a better position than we were a year ago. Year-to-date average gasoline and diesel demand are above or at or above five-year averages, and inventories of gasoline and diesel are at or below five-year averages.

從美國的供需平衡來看，2025年的開局比一年前好。年初至今的汽油和柴油平均需求量高於或等於或高於五年平均水平，而汽油和柴油庫存量等於或低於五年平均水平。

Spring maintenance season is currently underway and planned turnaround activity is expected to be fairly heavy, particularly for FCC and Alky units. In addition, announced planned closures could result in nearly 800,000 barrels of refining capacity in the US and Europe being shut down this year. Between these announced closures, increased diesel demand resulting from a cold winter weather in the US and Europe, and any potential increases in refined product demand as a result of business-friendly/pro-growth policies, we see the potential for tightening supply and demand balances this year, which should be supportive of increased crack spreads.

目前正值春季維護季節，預計計劃中的檢修活動將相當繁忙，尤其是對於 FCC 和 Alky 裝置。此外，宣布的關閉計劃可能會導緻美國和歐洲今年關閉近80萬桶的煉油能力。考慮到這些宣布的關閉措施、美國和歐洲冬季寒冷天氣導致的柴油需求增加、以及商業友好/促增長政策導致的成品油需求潛在增加，我們認為今年的供需平衡可能會收緊，這應該會支持裂解價差上漲。

The planned turnaround at Coffeyville is currently underway after we elected to accelerate the timing following an incident at Coffeyville's naphtha hydrotreater during freezing weather conditions in January. We currently anticipate the duration of the turnaround be extended by 10 to 15 days from the original plan and the cost to increase by $10 million to $15 million, although these figures could change depending on several factors including weather.

自從 1 月寒冷天氣條件下科菲維爾石腦油加氫處理器發生事故以來，我們決定加快時間安排，科菲維爾的計畫檢修目前正在進行中。我們目前預計週轉時間將比原計劃延長 10 至 15 天，成本將增加 1,000 萬美元至 1,500 萬美元，但這些數字可能會根據天氣等多種因素而變化。

We currently expect the turnaround to be complete by the end of March, which should position us well heading into the summer driving season. During the turnaround, we intend to complete tie-ins for the initial phase of the diesel recovery project at Coffeyville, which should give us the ability to increase desolate yield by approximately 1,500 barrels per day.

我們目前預計轉變將在 3 月底完成，這將使我們為夏季駕駛季節做好準備。在扭轉局面期間，我們打算完成科菲維爾柴油回收計畫初始階段的連接工作，這將使我們能夠將原油產量提高約 1,500 桶/天。

We believe we could further increase Coffeyville's desolate yield by another 2,500 barrels per day over the next few years if we elect to invest additional capital. We also plan to install some piping and revamp some of our tankage at Coffeyville, which should enable us to begin making up to 9,000 barrels per day of jet fuel with the potential to increase that capacity with further additional investment.

我們相信，如果我們選擇投入更多資金，未來幾年我們可以進一步將科菲維爾的石油產量每天提高 2,500 桶。我們還計劃在科菲維爾安裝一些管道並改造一些油罐，這將使我們能夠開始每天生產多達 9,000 桶的航空燃油，並且有可能透過進一步的額外投資來提高這一產能。

While it will take time to develop a significant book of business for the jet fuel, by shifting up to 9,000 barrels of desolate production to jet, we could potentially reduce Coffeyville's annual RFS obligation by up to $18 million RINs. Based on 2024 average jet to diesel spreads and average RIN prices, we estimate the potential margin uplift of approximately $5 to $7 a barrel on any new jet fuel sales. We currently expect to have the piping and tankage work associated with the jet fuel production complete by the end of the third quarter.

儘管開發大量的航空燃料業務需要時間，但透過將多達 9,000 桶的荒蕪生產轉移到航空燃料，我們有可能將 Coffeyville 每年的 RFS 義務減少多達 1800 萬美元的 RIN。根據 2024 年平均航空燃油與柴油價差和平均 RIN 價格，我們估計任何新航空燃料銷售的潛在利潤率將提升約 5 至 7 美元/桶。我們目前預計與航空燃料生產相關的管道和儲罐工作將在第三季末完成。

In the renewable segment, we completed the catalyst change in January, and we're currently running the unit at 5,000 barrels per day in an effort to optimize yield and catalyst life. We currently intend to run the unit until we get clarity on the blenders tax credit and or see the final rules on production tax credit. Without the $1 per gallon blender tax credit, we believe RIN prices and or low carbon fuel standard credits must increase significantly to compensate.

在再生能源領域，我們於一月份完成了催化劑更換，目前我們以每天 5,000 桶的速度運行該裝置，以優化產量和催化劑壽命。我們目前打算運行裝置，直到我們明確指出攪拌機的稅收抵免或看到生產稅收抵免的最終規則。如果沒有每加侖 1 美元的混合機稅收抵免，我們認為 RIN 價格和/或低碳燃料標準抵免必須大幅增加才能進行補償。

If not, a significant amount of biodiesel and renewable diesel production would likely be out of the money and would have to shut in. Given these headwinds as the renewable space moves forward, it is difficult to ignore that we have invested approximately $290 million in our renewable business over the last several years to participate in carbon emission reduction, generate RINs, and optimize our assets we have.

如果不這樣做，大量生物柴油和再生柴油生產可能會失去收益並不得不關閉。考慮到再生能源領域向前發展過程中的這些阻力，我們很難忽視過去幾年我們在再生能源業務上投資了約 2.9 億美元，用於參與碳減排、產生 RIN 和優化我們擁有的資產。

In doing so, we have been reminded that reliance on government credits is not a sustainable business and we already have enough exposure to politically mismanaged regulations like RFS. As a result, we are left with an investment with uncertain returns in the business that today is breakeven at best.

在這樣做的過程中，我們被提醒，依賴政府信貸不是一項可持續的業務，我們已經對 RFS 等政治管理不善的法規有足夠的了解。結果是，我們的投資報酬率無法確定，目前最多只能維持收支平衡。

We have completed the design of SAF RD project near our Coffeyville facilities, have a firm understanding of our capability to convert our Wynnewood renewable diesel unit to SAF production with additional capital. While we do believe there is potential for these opportunities in the future, it is critical to get clarity on available and durability of government subsidies before we continue investing additional capital or time into such ventures.

我們已經完成了位於 Coffeyville 工廠附近的 SAF RD 項目的設計，並且對我們利用額外資本將 Wynnewood 可再生柴油裝置轉換為 SAF 生產的能力有著堅定的理解。雖然我們確實相信未來這些機會具有潛力，但在我們繼續向此類項目投入更多資本或時間之前，必須先明確政府補貼的可用性和持久性。

We remain willing to participate further in this space but are pausing our intentions to actively pursue the market for partners and investors. We remain open to the opportunity if someone approaches us that is willing to accept the subsidy risk. And if an appropriate environment develops, resume an active approach to offering our value proposition to the market.

我們仍然願意進一步參與這一領域，但暫時擱置積極尋求合作夥伴和投資者市場的意圖。如果有人願意接受補貼風險並與我們接洽，我們仍會抓住機會。如果出現了適當的環境，我們將恢復積極的方式向市場提供我們的價值主張。

In the fertilizer segment, recent USDA estimates for ending corn and soybean inventories have declined, which is supportive of grain prices recently. The outlook for fertilizer demand for the spring is good, and we have seen prices increase to start the new year.

在化肥領域，美國農業部近期對玉米和大豆期末庫存的估計有所下降，這對近期的糧食價格形成支撐。春季化肥需求前景良好，新年伊始我們已經看到價格上漲。

We are continuing to invest in plant infrastructure for reliability, including the installation of two new boilers at Coffeyville in the fourth quarter and planned projects in 2025 that focus on water and electricity reliability and quality at both plants. We're also looking at the potential to expand our capacity to make DEF and we continue to evaluate the potential natural gas feedstock optionality project at the Coffeyville facility.

我們將繼續投資於工廠的可靠性基礎設施，包括第四季度在科菲維爾安裝兩台新鍋爐，以及 2025 年計劃實施的項目，重點關注兩家工廠的水電可靠性和品質。我們也正在研究擴大 DEF 生產能力的可能性，並將繼續評估 Coffeyville 工廠的潛在天然氣原料選購項目。

Looking at the first quarter of 2025, quarter to date metrics are as follows: Group 3 2-1-1 cracks have averaged $15.03 per barrel with a Brent TI spread of $3.33 per barrel and a WCS differential of $13.19. As of yesterday, Group 3 2-1-1 cracks were $18.68 per barrel, Brent TI was $3.99 per barrel, and WCS was $13.70 under WTI.

回顧 2025 年第一季度，本季迄今的指標如下：第 3 組 2-1-1 裂解價平均為每桶 15.03 美元，布倫特 TI 價差為每桶 3.33 美元，WCS 價差為 13.19 美元。截至昨日，第 3 組 2-1-1 裂解價為每桶 18.68 美元，布倫特 TI 裂解價為每桶 3.99 美元，WCS 裂解價為 WTI 裂解價 13.70 美元。

Rents were approximately $5.32 per barrel. Prompt fertilizer prices are $600 per ton for ammonia and $315 per ton for UAN.

租金約為每桶 5.32 美元。目前化肥價格為：氨水每噸 600 美元，UAN 每噸 315 美元。

Although 2024 was a challenging year for us, both operationally and from a broader market perspective, we feel we are well positioned to capitalize on any improvements in crack spreads this year as a result from supply rationalization. We are confident the liquidity enhancing measures we took in the fourth quarter should provide ample cash to get through the Coffeyville turnaround and weather any near-term weakness in cracks.

儘管 2024 年對我們來說都是充滿挑戰的一年，無論從營運角度還是從更廣泛的市場角度來看，但我們認為，由於供應合理化，我們有能力利用今年裂解價差的任何改善。我們相信，我們在第四季度採取的流動性增強措施應該提供充足的現金，以度過科菲維爾的復甦並抵禦短期內的任何疲軟。

I want to reiterate something Dane has mentioned in his prepared remarks that one of our focuses, one of our primary focuses after the completion of the turnaround, will be to start reducing debt and restoring our balance sheet to target levels as soon as we can, subject to market conditions and other conditions. As always, we continue to focus on safe, reliable operations of our facilities and continue to look for ways to properly grow our business.

我想重申丹恩在他的準備好的發言中提到的一點，我們的重點之一，在完成扭虧為盈之後我們的主要重點之一，就是根據市場狀況和其他條件，盡快開始減少債務並將資產負債表恢復到目標水平。像往常一樣，我們繼續專注於設施的安全、可靠運營，並繼續尋找合理發展業務的方法。

With that, operator, we're ready for questions.

接線員，現在我們可以回答問題了。

(Operator Instructions) Manav Gupta, UBS.

(操作員指示) Manav Gupta，瑞銀。

Morning, Dave and team. You did generate about $40 million in free cash flow in the fourth quarter. Now, obviously, the first quarter you are doing this big turnaround, but in line with the comments you made, looks like by second quarter things would be even in a better position.

早上好，戴夫和團隊。你們確實在第四季產生了約 4000 萬美元的自由現金流。現在，顯然你們在第一季就實現了巨大的轉變，但根據你們的評論，看起來第二季的情況會更好。

And so if you do continue to generate free cash post your Coffeyville turnaround, just trying to understand what would be better used in your mind just to pay down debt, or at some point you could rethink about instituting a dividend here?

因此，如果您在 Coffeyville 扭虧為盈後確實繼續產生免費現金，那麼您只是想了解一下，在您看來，什麼方法最好用來償還債務，或者在某個時候，您可以重新考慮在這裡設立股息？

Hi, Manav. As we said in our prepared remarks, one of the key focuses we do want to work on is the delevering, comfortable with the original billion, want to work off the term loan. I don't think it should be a scenario where we should expect to see the term one fully gone before a dividend were potentially to return. But we'd want to see some sustained strength in the market as well. So we'll look to take a balanced approach and see how things develop as we go forward.

你好，Manav。正如我們在準備好的發言中所說的那樣，我們確實想要努力的重點之一是去槓桿，對原來的 10 億美元感到滿意，希望能夠償還定期貸款。我認為，我們不應該期望看到在股息可能回歸之前，第一個期限就完全消失。但我們也希望看到市場持續走強。因此，我們將採取平衡的方法，並觀察事態的未來發展。

As you know, Manav, the dividend is something the Board looks at every quarter. And as cracks improve, I think the likelihood goes up that the Board acts on that.

如您所知，Manav，董事會每個季度都會關注股息。隨著裂縫的改善，我認為董事會採取行動的可能性會增加。

Perfect. My quick follow-up here is you mentioned that you are looking at some projects which could give you a higher jet yield. Just trying to understand what could be the CapEx required to pull off those projects and what kind of timeline are we looking at?

完美的。我的快速跟進是，您提到您正在研究一些可以為您帶來更高噴射機收益的項目。只是想了解完成這些項目需要多少資本支出以及我們正在考慮什麼樣的時間表？

If you do decide to move ahead, could you bring those on within the next 12 or 15 months by making some 2 weeks? So help us understand what could give you a higher jet yield going ahead.

如果您決定繼續前進，您是否可以在接下來的 12 或 15 個月內，利用大約 2 週的時間完成這些工作？因此，請幫助我們了解如何讓您在未來獲得更高的噴射機產量。

Well, I think right now, Manav, our constraint is really building a book of business for jet. A lot of the airlines, major airlines are on three-year contract terms. So it's going to take a little time to build it, but in essence, it's just a jump or two and some pipe that we have to install and rearrange our tankage at Coffeyville to add additional volume of jet.

嗯，我認為現在，Manav，我們的限制實際上是為噴射機建立一個業務帳簿。許多航空公司，尤其是大型航空公司，都簽訂了三年的合約期限。因此，建造它需要一點時間，但本質上，它只是一兩個跳躍和一些管道，我們必須安裝和重新安排我們在科菲維爾的儲罐以增加噴射量。

As you know, we already produced jet at the Wynnewood refinery and are mainly sales constrained on that also with the loss of our military contract last year. So it was not going to take as long as I said in my prepared remarks. We should be ready at the end of the third quarter to produce jet at Coffeyville.

如你所知，我們已經在 Wynnewood 煉油廠生產了噴射機，但由於去年失去了軍事合同，我們的銷售也受到了很大的限制。因此，它不會像我在準備好的發言中說的那樣花費那麼長時間。我們應該在第三季末準備好在科菲維爾生產噴射機。

Thank you so much. I'll turn it over.

太感謝了。我把它翻過來。

Thank you.

謝謝。

Adam Wijaya, Goldman Sachs.

高盛的亞當‧維賈亞 (Adam Wijaya)。

Yeah, good afternoon, team, and thank you for taking my questions. First one is just on how you guys think about the operating footprint of the company. I know it's probably more of a near-term focus on the big turnaround going on right now and then the balance sheet. But in the past, you've talked about looking to potentially diversify the company's refining operating footprint from the Mid-Con into other regions.

是的，團隊下午好，感謝你們回答我的問題。第一個問題是關於你們如何看待公司的營運足跡。我知道短期內可能更多的是關注正在發生的重大轉變，然後是資產負債表。但過去，您曾談到尋求將公司的煉油業務範圍從 Mid-Con 分散到其他地區。

Just wanted to get your latest views here if you think there are any regions of focus we should be mindful of and then anything on a potential timeline there. Thanks.

如果您認為我們應該關注某些重點領域，以及那裡潛在的時間表上的任何內容，我只是想在這裡了解您的最新觀點。謝謝。

Well, Adam, I think we've mentioned many times we look at everything that comes on the market. Bid/ask has been too wide for us to even consider a lot of these deals that have come up, but we'll continue to look for everything. Our biggest weakness as a company is really our concentration in the Group 3 market in the in the Mid-Con pad, too, and anything that can diversify us from that is a benefit.

嗯，亞當，我想我們已經多次提到過，我們會關注市場上出現的所有東西。買賣價差太大，我們甚至無法考慮出現的許多交易，但我們會繼續尋找一切。我們公司最大的弱點其實就是我們過於集中於 Mid-Con 地區的 Group 3 市場，而任何能夠讓我們擺脫這一困境的事物都是有益的。

That said, our focus is more inland and going west than it is going south or east. I might consider going north if the right deal ever came up. But again, we want to diversify out of pet, too, as much as possible.

這就是說，我們的重點更多是向內陸和向西，而不是向南或向東。如果有合適的交易出現，我可能會考慮去北方。但同樣，我們也希望盡可能實現寵物業務的多樣化。

Got it, very clear. And just to follow-up from me on the renewable segment, I saw that you guys broke the segment earnings profile out this quarter, and when we think about the path to run rate a positive EBITDA contribution going forward aside from improving margins more broadly, operationally, is there anything you think we should be focused on?

明白了，非常清楚。關於再生能源部門的後續問題，我看到你們本季公佈了部門獲利狀況，當我們考慮除了更廣泛地提高利潤率之外，未來的 EBITDA 貢獻是否還能繼續為公司帶來積極的營運效益時，您認為我們應該關注哪些方面？

And then can you tie that into how you guys think about potential opportunities within renewables specifically in SAF, kind of what's needed from a supply demand standpoint or an incentive standpoint to further make a call there? Thanks.

然後，您能否將其與您們對再生能源領域，特別是在 SAF 領域的潛在機會的看法聯繫起來，從供需角度或激勵角度來看，需要什麼才能進一步做出決定？謝謝。

Sure, Adam, I mean, as I mentioned in the prepared remarks, the problem with renewables is the uncertainty of government subsidies. And they will swing wildly, I guess I'd say it and when I say that it's a politically driven RFS regulation that it seems to be there's nobody driving the ship. And yeah, I'll just use the example of the fact that the mandate is $22 billion and [15, 16] of that is ethanol.

當然，亞當，我的意思是，正如我在準備好的發言中提到的，再生能源的問題在於政府補貼的不確定性。而且它們會劇烈搖擺，我想我會這麼說，當我說這是一項受政治驅動的 RFS 法規時，似乎沒有人在掌舵。是的，我只想舉個例子，授權金額是 220 億美元，其中 [15, 16] 是乙醇。

Ethanol does little for the environment, whereas renewable diesel does, and lo and behold, you've got D6s coupled with D4s that's starting to break a little bit, but even so, you would think the government would drive towards lower carbon material rather than just doing a mandate on ethanol, which is really not necessary at all, because ethanol is part of the fuel blend, it's a cheap blend stock for octane and it would be blended no matter what.

乙醇對環境的影響不大，而再生柴油卻很大，瞧，D6 和 D4 已經開始出現一些問題，但即便如此，你還是會認為政府會推動低碳材料的發展，而不是僅僅對乙醇進行強制要求，這實際上根本沒有必要，因為乙醇是燃料混合物的一部分，它是一種廉價的辛烷值混合原料，無論如何都會進行混合。

So until we get clarity on some of these regulations and somebody -- and adults in the room controlling them, it'd be difficult to see how we'd make some investments. Just to give you an idea on SAF, the subsidies, and you know that today the people are reporting that that's selling for about $1 to $2 premium over RD. If you take all the subsidies and add them all up, you need more like $4 to even have that kind of sales price.

因此，在我們弄清楚這些法規以及房間裡控制這些法規的某些人或成年人之前，我們很難想像如何投資。只是為了讓您了解 SAF 和補貼，您知道今天人們報告說它的售價比 RD 高出約 1 到 2 美元。如果將所有補貼加起來，則需要 4 美元以上的資金才能達到這樣的銷售價格。

So to us, we've had all we can stand of exposure to government subsidies and it's going to take a shift change for us to really invest in it. We do have projects that look attractive on a capital per barrel capital basis for both SAF and renewables, but, again, these subsidies are just scary.

所以對我們來說，我們已經承受了所有政府補貼，需要改變經營方式才能真正投資。我們確實有一些項目在每桶資本基礎上對 SAF 和再生能源來說都很有吸引力，但這些補貼再次令人恐懼。

Got it, very clear. Thank you.

明白了，非常清楚。謝謝。

John Royall, JPMorgan.

摩根大通的約翰‧羅亞爾 (John Royall)。

Hi, good afternoon. Thanks for taking my question. So my first one is on asset sales and maybe a two-parter if I can. First, can you tell us the tax implications of the $90 million Midway pipeline sale and have the taxes been paid out yet?

嗨，下午好。感謝您回答我的問題。因此，我的第一篇文章是關於資產銷售，如果可以的話，我可能會寫兩個部分。首先，您能告訴我們 9,000 萬美元的 Midway 輸油管銷售涉及的稅務問題嗎？

And then secondly, how should we think about asset sales from here and if other assets could potentially shake loose? Does a better environment in refining maybe change your thinking on raising cash via asset sales?

其次，我們該如何考慮資產出售，以及其他資產是否有可能受到衝擊？煉油環境的改善是否會改變您透過出售資產來籌集現金的想法？

Good afternoon, John. Yeah, so on the Midway sale the $90 million proceeds, there will be a tax impact. Say our tax base in that joint venture was call it $15 million, so the remaining would be exposed to tax, has not been paid, but anticipate paying that as we move through the beginning of 2025 here.

下午好，約翰。是的，因此 Midway 出售的 9,000 萬美元收益將產生稅收影響。假設我們在該合資企業中的稅基為 1500 萬美元，那麼剩餘部分就需要繳稅，雖然尚未繳納，但預計在 2025 年初繳納。

As far as other logistics assets we have, we used to advertise $80 million which was kind of an aggressive EBITDA content that included if we were to spin off our logistics as a separate MLP, we think that revised -- that number is more realistic around $20 million. That's post the sale of Midway. So there's a few out there but not near as much as we had originally advertised, John. So hopefully that answers your question.

就我們擁有的其他物流資產而言，我們過去宣傳的 8000 萬美元是一個積極的 EBITDA 內容，其中包括如果我們將我們的物流分拆為單獨的 MLP，我們認為經過修改後，這個數字在 2000 萬美元左右更為現實。這是中途島出售後的情況。因此，確實有一些，但是沒有我們最初宣傳的那麼多，約翰。希望這能回答你的問題。

It does. Thank you. And then next question is on renewable diesel. I think you mentioned in the opener that you have some limitations on the catalyst side that are impacting your capacity. I think you took it down about 20%, if I heard it right. Can you just give us a little more detail on what those constraints are?

是的。謝謝。下一個問題是關於再生柴油。我記得您在開場白中提到過，催化劑方面存在一些限制，這些限制影響了您的產能。如果我沒聽錯的話，我認為你把它降低了約 20%。您能否向我們詳細介紹一下這些限制是什麼？

Well, this was a revamp, so we took an existing reactor and unit and converted it to what we thought was 7,500 barrels of capacity per day of vegetable oil and corn oil. Well, as it turns out, we're willfully short of catalyst. Our run lengths are between 6 and 8 months at best, and it's just -- the yield is just so affected by the high space velocity at the higher rates that we just think we have to downgrade the unit to really do it.

嗯，這是一次改造，所以我們利用現有的反應器和裝置，將其改造成我們認為每天可生產 7,500 桶植物油和玉米油的裝置。那麼，事實證明，我們故意缺乏催化劑。我們的運行時間最多為 6 至 8 個月，而且 - 產量受到較高速率下高空間速度的影響很大，因此我們認為必須降級設備才能真正做到這一點。

With the addition of another catalyst bed, we'd be right back to that 7,500, possibly even more. And if you look at the SAF project, that's largely how we would accomplish it. We'd add a reactor. And that would take care of the pre-treatment of the -- to remove the oxygen and then the existing reactor would be adequate for isomerization. So that's kind of the ultimate plan. The problem is, as I mentioned earlier, subsidies are scary.

如果再增加一個催化劑床，我們的產量就會回到 7,500，甚至可能更多。如果你看一下 SAF 項目，你會發現這基本上就是我們實現它的方式。我們會增加一個反應爐。這樣可以完成預處理－去除氧氣，然後現有的反應器就適合進行異構化了。這就是最終的計劃。問題是，正如我之前提到的，補貼令人恐懼。

Thank you.

謝謝。

Matthew Blair, Tudor Pickering.

馬修布萊爾、都鐸皮克林。

Thank you and good morning. The refining capture improves quarter to quarter, which seems pretty good in the context of a higher RVO and perhaps some other challenges. Can you talk about the tailwinds to capture in the fourth quarter and then also discuss any major moving parts on capture we should be thinking about for the first quarter?

謝謝你，早安。煉油能力逐季度提高，在 RVO 更高且可能存在其他一些挑戰的背景下，這似乎相當不錯。您能否談談第四季度的順風因素，然後討論我們在第一季應該考慮的任何重大變化因素？

Hey, Matt, yeah, so tailwinds we want to capture, I would say two things. Not massive contributors, but with the run cuts we did enact in December, that kind of drove our margin to a higher per barrel number on the cracks earlier in the period relative to the average across the quarter when they fell off in December. There's some small inventory benefits, call it $0.30 to $0.50 a barrel also in there. Not a big number, but on a depressed crack, it does give you a little bit of a benefit.

嘿，馬特，是的，所以我們想要抓住順風，我想說兩件事。雖然貢獻並不大，但由於我們在 12 月實施了減產措施，這使得我們本季早些時候的每桶裂解利潤相對於 12 月本季平均水平有所上升。其中還有一些小幅庫存收益，例如每桶 0.30 美元到 0.50 美元。雖然不是一個很大的數字，但在壓低裂縫的情況下，它確實會為你帶來一點好處。

Other than that, not a lot of unusual things to report and then as we look to the first quarter, again, I think it's going to be more a function of just getting back to normal operations and having a lower percentage of the crack being taken up by fixed costs if the crack stays elevated here.

除此之外，沒有太多不尋常的事情需要報告，然後當我們展望第一季時，我再次認為，如果裂解價差保持高位，那麼這將更多地取決於恢復正常運營，並且裂解價差中固定成本所佔的百分比會較低。

Sounds good. And then I had two questions in regards to the RD feedstock mix. First, in the reporting, there's other feedstocks and lends stocks line item that's fairly large, it's about 1/3 of the total throughput. Could you talk about what goes into that line item? And then second, with the 45Z coming out, your pre-treaters online, are you anticipating any changes in your RDU feedstock mix going forward?

聽起來不錯。然後我有兩個關於研發原料混合物的問題。首先，報告中的其他原料和借出庫存項目相當大，約佔總產量的 1/3。能談談該項目的具體內容嗎？第二，隨著 45Z 的推出，您的預處理器上線，您是否預計您的 RDU 原料組合將來會發生任何變化？

Well, Matt, I think on your first question, the other is just refinery grass streams that are processed with the RD unit when it was previously a hydrocracker service. And then there's also, I think others includes hydrogen as a part of it, so that's probably the bigger piece.

嗯，馬特，我想關於你的第一個問題，另一個只是用 RD 裝置處理的煉油廠草流，當時它以前是加氫裂化服務。然後還有，我認為其他人將氫作為其中的一部分，所以這可能是更大的部分。

On your second question, which I already forgot, can you repeat it again, please?

關於你的第二個問題，我已經忘記了，你能再重複一次嗎？

Is anything changing on your RDU feedstock mix going forward in light of the 45Z?

鑑於 45Z，你們的 RDU 原料混合物將來會有什麼變化嗎？

Well, we would desire to run more corn oil if we could, which is a low CI material, and the problem again, it comes back to catalysts and our ability to do that is limited by our ability to process more corn oil without a yield penalty. We continue to explore that though and look at other ways to do it. And the Z is good, but it doesn't quite make up for the BTC in any case.

好吧，如果可以的話，我們希望使用更多的玉米油，這是一種低 CI 材料，問題又回到了催化劑上，而我們這樣做的能力受限於我們在不損失產量的情況下加工更多玉米油的能力。我們會繼續探索這個問題並尋找其他方法。雖然 Z 不錯，但無論如何它都無法彌補 BTC 的不足。

Great, thanks for your insights.

非常好，感謝您的見解。

You're welcome.

不客氣。

We have reached the end of the question-and-answer session. I would now like to turn the floor back over to management for closing comments.

問答環節已經結束。現在我想將發言權交還給管理階層，請他們發表最後評論。

Again, I'd like to thank you all for your interest in CVR Energy. Additionally, I'd like to thank our employees for their hard work and commitment towards safe, reliable, environmental, and responsible operations. We look forward to reviewing our first-quarter results in the next earnings call. Thank you.

再次感謝大家對 CVR Energy 的關注。此外，我還要感謝我們的員工為安全、可靠、環保和負責任的營運所做的努力和承諾。我們期待在下次財報電話會議上審查我們的第一季業績。謝謝。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與並祝您有美好的一天。