CVR Energy Q2 Earnings Call Highlights

CVR Energy delivered strong Q2 operating results, with $161 million in EBITDA, $209 million in adjusted EBITDA and $307 million in operating cash flow. Refining adjusted EBITDA rose to $106 million on higher crack spreads and 98% refinery utilization, while fertilizer adjusted EBITDA increased to $107 million with 99% ammonia utilization. RIN obligations and hedge losses remained significant headwinds. Net RIN expense totaled $216 million, while realized derivative losses reached $81 million; the company had approximately 8.2 million barrels of crack-spread swaps outstanding at quarter-end. Management is prioritizing deleveraging and selective growth, targeting $1 billion in gross leverage excluding CVR Partners debt. Third-quarter refinery throughput is expected at 205,000–220,000 barrels per day, while fertilizer utilization will fall to 75%–80% during the East Dubuque turnaround and expansion.

CVR Energy NYSE: CVI reported strong operating performance in the second quarter of 2026, supported by high refinery and ammonia plant utilization, elevated refining margins and favorable fertilizer-market conditions. The company said it generated consolidated net income of $46 million, while reporting a loss per share of $0.03, EBITDA of $161 million and adjusted EBITDA of $209 million. Chief Executive Officer Dane Neumann said the company’s asset base benefited from tight energy and fertilizer markets linked to ongoing global conflicts.

CVR Energy declared a second-quarter dividend of $0.10 per share and said current market conditions could create opportunities to reduce leverage and add shareholder value.

CVR Energy’s petroleum segment generated adjusted EBITDA of $106 million in the second quarter, up from $38 million a year earlier. The company attributed the improvement primarily to higher Group 3 crack spreads and increased throughput volumes, partly offset by higher Brent expenses, WTI backwardation and realized derivative losses. Combined refinery throughput totaled approximately 213,000 barrels per day, representing crude utilization of about 98% of nameplate capacity. Light-product yield was 92% of total throughput. The Group 3 2-1-1 crack spread averaged $44.91 per barrel during the quarter, compared with $24.02 per barrel in the second quarter of 2025.

CVR Energy’s realized margin, adjusted for renewable fuel standard, inventory valuation and unrealized derivative impacts, was $12.43 per barrel, or a 28% capture rate on the Group 3 benchmark. Renewable Identification Number, or RIN, costs remained a major drag on results. Net RIN expense, excluding the change in the company’s RFS liability, was $216 million, or $11.16 per barrel. Richard Roberts, interim chief financial officer and vice president of FP&A and investor relations, said the expense reduced the company’s capture rate by approximately 25%. CVR Energy had an estimated accrued RFS obligation of $408 million as of June 30, representing 169 million RINs marked at an average price of $2.41. The Environmental Protection Agency had not ruled on Wynnewood Refining Company’s pending 2025 small-refinery-exemption petition, Roberts said. The company continues to recognize 100% of Wynnewood’s RIN obligation in its financial statements, which was approximately $77 million for the quarter. Roberts said a 100% exemption for Wynnewood would have improved the company’s consolidated capture rate by roughly 9% during the quarter. CVR Energy said it is purchasing 50% of Wynnewood’s expected 2026 obligation while maintaining that the refinery qualifies for a full waiver under...