CVR Refining's Q3 ethanol credit bill was $57.4 million-CEO


HOUSTON, Nov 1 (Reuters) - CVR Refining LP spent$54.7 million on ethanol credits in the third quarter, down from$65.5 million in the second quarter this year, Chief ExecutiveJack Lipinski told analysts on Friday.

The company expects its total 2013 cost for the credits torange from $175 million to $190 million, he said, lower thanprevious estimates of $200 million to $250 million.

Refiners must buy credits for each gallon of fuel they sellthat isn't blended with ethanol to comply with U.S. renewablefuels standard policy.

Other refiners reported higher costs for the credits, knownas Renewable Identification Numbers (RINs), in the thirdquarter.

However, CVR had to shut a gasoline-making fluid catalyticcracking unit at its 115,700 barrels-per-day (bpd) refinery inCoffeyville, Kansas, from July to September because of anequipment failure. The shutdown, which the company called"unprecedented," cut its output, so CVR made fewer gallons thatwould have required the company to buy RINs.

The unit resumed full operations on Sept 11 "maintainedstrong operational performance for the remainder of thequarter," the company said.

Lipinski also said the company expects throughputs at theCoffeyville refinery and its 70,000 bpd refinery in Wynnewood,Oklahoma, to reach a combined 180,000 to 190,000 bpd in thefourth quarter.

View Comments (0)