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Investing.com -- CVR Energy Inc . (NYSE: NYSE:CVI) shares climbed 9% as the company’s fourth-quarter earnings surpassed consensus estimates. The petroleum refining and nitrogen fertilizer manufacturing firm reported a narrower adjusted loss per share of ($0.13) against analysts’ expectations of ($0.42). Revenue for the quarter reached $1.95 billion, slightly ahead of the $1.93 billion consensus.
Despite a year-over-year decline in net income for both the fourth quarter and full year, CVR Energy’s performance in the last quarter showed resilience with a net income of $28 million, or 28 cents per diluted share, compared to $91 million, or 91 cents per diluted share, in the same period the previous year. Adjusted EBITDA for Q4 2024 was $67 million, a decrease from $170 million in Q4 2023.
Scotiabank (TSX:BNS) analyst Paul Y. Cheng commented on the results, stating, "We think CVI’s 4Q24 results will have a slightly positive impact on near-term share price performance." The analyst highlighted the company’s strong refining operations and income tax benefit, which significantly offset pre-tax income. However, Cheng pointed out that the first-quarter outlook for refining in 2025 appears weaker than expected, with projected throughput lower than previous estimates.
CVR Energy also reported notable achievements in enhancing liquidity, including a $408 million increase through a Term Loan and the sale of a 50% stake in Midway Pipeline. The company declared a cumulative cash dividend of $1.00 per share for 2024.
The petroleum segment experienced a decline in net income and EBITDA year over year, attributed to reduced crack spreads and lower throughputs. However, the renewables segment showed improvement, with a reduced net loss and positive adjusted EBITDA, driven by lower vegetable oil feed prices and improved catalyst performance.
For the nitrogen fertilizer segment, CVR Partners (NYSE:UAN) produced a combined 210,000 tons of ammonia in the fourth quarter, with realized gate prices for UAN and ammonia showing mixed results compared to the previous year.
As CVR Energy looks ahead, the company has commenced a planned turnaround at its Coffeyville refinery, positioning itself for anticipated improvements in crack spreads with the upcoming summer driving season and capacity rationalization.
CVR Energy’s financial position remains solid, with $987 million in cash and cash equivalents and a total debt of $1.9 billion as of December 31, 2024. The company’s proactive measures to navigate the challenging market environment, including segment realignment and strategic transactions, have contributed to its positive stock movement following the earnings release.
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