CVR Energy (NYSE:CVI) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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The full earnings call is available at https://events.q4inc.com/attendee/598656914
Summary
CVR Energy reported a first-quarter 2026 consolidated net loss of $160 million, with losses per share at $1.91 and an EBITDA loss of $52 million, primarily due to unrealized derivative losses and changes in RFS liability.
The company announced a $0.10 per share dividend for the first quarter, reflecting a commitment to balanced debt reduction and shareholder returns.
Operational highlights included a crude utilization rate of 97% and ammonia plant utilization at 103%, with the company positioned to capture improved margins due to global supply chain disruptions.
Management emphasized a focus on deleveraging and indicated continued interest in M&A opportunities, while also navigating a volatile market environment.
Future guidance for the second quarter of 2026 includes expected throughput of 200,000 to 215,000 barrels per day in the petroleum segment and an ammonia utilization rate between 95% and 100% in the fertilizer segment.
Full Transcript
Regina (Conference Operator)
Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time I’d 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 speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star then the number one on your telephone keypad. To withdraw your question, press Star one. Again, we ask that you please limit your questions to one and one follow-up I’d now like to turn the conference over to Richard Roberts, vice president of FP&A and Investor Relations. Please go ahead.
Richard Roberts (Vice President of FP&A and Investor Relations)
Good afternoon everyone. We very much appreciate you joining us this afternoon for our CVR Energy first quarter 2026 earnings call. With me today are Mark Pytosch, our Chief Executive Officer, Dane Newman, our Chief Financial Officer, Mike Wright, our Chief Operating Officer, Travis Capps, our Chief Commercial Officer and other members of management. Prior to discussing our 2026 first quarter 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. 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 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. This call also includes various non GAAP financial measures. The disclosures related to such non GAAP measures, including a reconciliation to the most directly comparable GAAP financial measures, are included in our 2026 first quarter earnings release that we filed with the SEC and Form 10-Q for the period and will be discussed during the call. With that said, I’ll turn the call over to Mark.
Mark Pytosch (Chief Executive Officer)
Thank you Richard Good afternoon everyone and thank you for joining our earnings call. In the first quarter our operations performed well with crude utilization of 97% and ammonia plant utilization of 103%. Major geopolitical events drove volatility in energy and fertilizer markets which have set up attractive market opportunities for the balance of 2026. Given the disruptions in global supply chains with loss of production and lack of product movement for refined products and fertilizer, CVR Energy is well positioned to improve our margin capture for the balance of the year. We are pleased to announce the first quarter 2026 dividend of $0.10 per share and we believe our prospects should allow for balanced debt reduction and capital returns to shareholders as we move forward. Now let me turn the call over to Dane to discuss our financial highlights.
Dane Newman (Chief Financial Officer)
Thank you Mark Good afternoon everyone. For the first quarter of 2026 our consolidated net loss was 160 million, losses per share were $1.91 and EBITDA was a loss of 52 million. Our first quarter results include unrealized derivative losses of 158 million, which primarily relate to NYMEX gasoline and diesel crack spread swaps entered into during the quarter against expected future production at a crack spread value of 447 million through 2027, which I will discuss further in our petroleum segment results. In addition, our results also include an unfavorable change in our RFS liability of 51 million and favorable inventory valuation impacts of 120 million. Excluding the above mentioned items, adjusted EBITDA for the quarter was 37 million and adjusted losses per share were $1.24. Adjusted EBITDA in the Petroleum segment was a loss of $50 million for the first quarter compared to a loss of $30 million for the first quarter of 2025. Increased rent expenses, higher operating costs and realized derivative losses drove the majority of the decrease from the prior year period. Combined total throughput for the first quarter of 2026 was approximately 214,000 barrels per day. Period utilization for the quarter was approximately 97% of nameplate capacity and light product yield was 93% on total throughput volumes. Benchmark cracks for the first quarter of 2026 increased from the prior year period, with the Group 3211 averaging $21.58 per barrel compared to $17.65 per barrel in the first quarter of 2025. Our first quarter realized margin adjusted for unrealized derivative losses, the change in RFS liability and inventory valuation was $4.72 per barrel, representing a 22% capture rate on the Group 3 211. Benchmark RIN prices increased significantly from the first quarter 2025 levels, more than doubling to almost $9.50 per barrel for the first quarter of 2026. Net RINs expense for the quarter excluding the change in RFS liability was 143 million or $7.37 per barrel, which negatively impacted our capture rate for the quarter by approximately 34%. EPA has repeatedly stated that the cost of RINs is ultimately passed through to consumers at the pump. The decision to establish the highest RVO in history through the recent set to rule has driven RIN prices significantly higher, which has in turn raised the price of gasoline. This is in direct conflict with the Administration’s stated goal of lowering fuel costs for American consumers. RIN prices have increased more than 75% since the beginning of the year, in addition to the 18% increase in the RVO, currently adding 25 to 30 cents to every gallon of fuel purchased in America. If the Administration is serious about lowering fuel prices, it should start with the rfs. The estimated accrued RFS obligation on the balance sheet was 204 million at March 31, representing 113 million RINs mark to market at an average price of $1.80. As EPA has not yet ruled on our pending 2025 petition, we’ll we will continue to recognize 100% of Wynnewood Refining Company’s RIN obligation in our financials, which for the first quarter of 2026 was approximately 52 million. Had Winniewood Refining Company received the 100% SRE we believe it is entitled to, our consolidated capture rate for the quarter would have improved by approximately 12%. Once again, EPA has missed a deadline on ruling on Wynnewood Refining Company’s 2025 SRE petition. Will the EPA ever meet a deadline? Our first quarter 2026 results included derivative losses totaling 182 million. As previously discussed, 158 million of this loss was the unrealized mark to market change in all of our open crack spread swap positions as of March 31, and our physical positions intended to offset are expected to be sold as the swap contracts expired through 2027. Given this disconnect, we do not view the impact of the unrealized loss as a …
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