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

November 1, 2013


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 Executive Jack Lipinski told analysts on Friday.

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

Refiners must buy credits for each gallon of fuel they sell that isn't blended with ethanol to comply with U.S. renewable fuels standard policy.

Other refiners reported higher costs for the credits, known as Renewable Identification Numbers (RINs), in the third quarter.

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

The unit resumed full operations on Sept 11 "maintained strong operational performance for the remainder of the quarter," the company said.

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