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CVR Energy Inc (CVI)
:CVI
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CVR Energy
(NYSE:CVI)55Neutral
Positive Factors
Fertilizer Segment Performance
The Fertilizer segment is expected to see sequentially higher EBITDA due to seasonal strength in ammonia.
Liquidity
The company added ~$400mm in liquidity in December with a pipeline sale and a new term loan.
Negative Factors
Refining Sector Challenges
Weak macro trends in the refining sub-sector and company-specific near-term headwinds led to a neutral analyst recommendation.
CVR Energy (CVI) vs. S&P 500 (SPY)
Market Cap
$1.81B
Dividend Yield11.12%
Average Volume (3M)1.01M
Price to Earnings (P/E)258.3
Beta (1Y)1.24
Revenue Growth-17.69%
EPS Growth-99.09%
CountryUS
Employees1,595
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.07
Shares Outstanding100,530,600
10 Day Avg. Volume1,306,055
30 Day Avg. Volume1,014,331
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)4.60
P/FCF Ratio4.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside15.89% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
CVR Energy Business Overview & Revenue Model
Company DescriptionCVR Energy, Inc. is a holding company. The firm engages in the provision of petroleum refining and marketing business. It operates through the following segments: Petroleum and Nitrogen Fertilizer. The company was founded in September 1906 and is headquartered in Sugar Land, TX.
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
18.12
Price Trends
19.27
Negative
19.65
Negative
22.48
Negative
Market Momentum
-0.27
Positive
41.98
Neutral
15.19
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 18.12 is below the 20-day moving average (MA) of 19.08, below the 50-day MA of 19.27, and below the 200-day MA of 22.48, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.19 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $49.86B | 24.49 | 7.27% | 3.76% | -2.81% | -68.00% | |
67 Neutral | $44.58B | 14.15 | 14.14% | 2.43% | -6.70% | -57.84% | |
63 Neutral | $40.19B | 14.87 | 10.87% | 3.40% | -10.35% | -65.68% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
55 Neutral | $1.81B | 258.33 | 0.90% | 11.12% | -17.69% | -99.09% | |
47 Neutral | $979.58M | ― | -97.43% | 6.41% | -28.68% | -4373.94% | |
46 Neutral | $2.37B | ― | -9.63% | 5.11% | -13.59% | -127.47% |
* Energy Sector Average
Performance Comparison
CVI
CVR Energy
18.12
-12.93
-41.64%
DK
Delek US Holdings
15.23
-8.79
-36.59%
MPC
Marathon Petroleum
135.12
-36.41
-21.23%
PSX
Phillips 66
119.74
-22.12
-15.59%
VLO
Valero Energy
121.76
-18.52
-13.20%
PBF
PBF Energy
20.06
-26.31
-56.74%
CVR Energy Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -2.00% | 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
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.
Business Operations and Strategy
CVR Energy to Launch Investor Presentation in 2025
Neutral
Jan 7, 2025
CVR Energy, Inc. has announced that starting January 7, 2025, it will utilize an Investor Presentation for meetings with current and potential investors and analysts. The presentation will be available on the company’s website, and while it contains forward-looking statements, it is not intended to be considered complete or as material information for investment decisions.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
CVR Energy’s Strategic Moves: Tender Offer and Financing
Neutral
Dec 12, 2024
CVR Energy has entered into a Tender Offer Agreement with Icahn Enterprises to purchase a significant portion of its shares, while the board remains neutral on the offer. The company is also enhancing its financial position through a $325 million Senior Secured Term Loan B facility to fund capital expenditures, including a major turnaround at its Coffeyville refinery. In parallel, CVR Energy has extended its CEO Dave Lamp’s employment agreement, reflecting stability in leadership amidst these strategic financial decisions.
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.