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CVR Energy Reports Second Quarter 2019 Results and Announces Cash Dividend of 75 Cents

SUGAR LAND, Texas, July 24, 2019 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (CVI) today announced net income of $116 million, or $1.16 per diluted share, on net sales of $1,687 million for the second quarter of 2019, compared to net income of $43 million, or 50 cents per diluted share, on net sales of $1,914 million for the second quarter of 2018. Second quarter 2019 EBITDA was $273 million, compared to second quarter 2018 EBITDA of $180 million.

“CVR Energy delivered strong results for the second quarter 2019, primarily attributable to safe and reliable operations, lower Renewable Identification Number prices, higher crack spreads and increased fertilizer sales volumes and pricing,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “In addition, in May we announced that our subsidiary had successfully sold its 1.5 million barrel Cushing, Oklahoma, crude oil terminal and related assets, resulting in an asset sale gain.

“During the 2019 second quarter, CVR Partners continued to be impacted by wet weather across the Midwest. However, it experienced solid demand for nitrogen fertilizer during the quarter and was able to deliver significant volumes of products to customers at netback prices much higher than the same period last year,” Lamp said. “CVR Partners’ plants ran well during the quarter, with ammonia utilization rates of 97 percent at Coffeyville and 98 percent at East Dubuque. CVR Partners also created positive distributable cash and declared a second quarter distribution of 14 cents per unit.”

Petroleum

The petroleum segment reported second quarter 2019 operating income of $163 million on net sales of $1,552 million, compared to operating income of $113 million on net sales of $1,824 million in the second quarter of 2018.

Refining margin per total throughput barrel was $15.66 in the second quarter of 2019, compared to $14.13 during the same period in 2018. Crude oil pricing during the quarter led to an inventory valuation impact of less than $1 million, or 2 cents per total throughout barrel, compared to $22 million, or $1.10 per total throughput barrel, in the second quarter of 2018. The petroleum segment also recognized a second quarter 2019 derivative gain of $4 million, or 22 cents per total throughput barrel, compared to a gain of $10 million, or 51 cents per total throughput barrel, for the prior year period. Included in the total derivative gain for the second quarter of 2019 was an unrealized gain of $2 million, compared to an unrealized loss of $7 million a year earlier.

Second quarter 2019 combined total throughput was approximately 216,000 barrels per day (bpd), compared to approximately 218,000 bpd of combined total throughput for the second quarter of 2018.

Fertilizer

The nitrogen fertilizer segment reported operating income of $35 million on net sales of $138 million for the second quarter of 2019, compared to an operating loss of less than $1 million on net sales of $93 million for the second quarter of 2018.

For the second quarter of 2019, CVR Partners’ consolidated average realized gate prices for urea ammonia nitrate (UAN) improved significantly over the prior year, up 14 percent to $217 per ton, while ammonia was up 31 percent over the prior year to $456 per ton. Average realized gate prices for UAN and ammonia were $191 per ton and $348 per ton, respectively, for the second quarter of 2018.

CVR Partners’ fertilizer facilities produced a combined 211,000 tons of ammonia during the second quarter 2019, of which 71,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 316,000 tons of UAN. During the second quarter 2018, the fertilizer facilities produced 174,000 tons of ammonia, of which 65,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 241,000 tons of UAN.

Cash, Debt and Dividend

Consolidated cash and cash equivalents was $540 million at June 30, 2019. Consolidated total debt and finance lease obligations was $1,195 million at June 30, 2019, with no debt other than the Company’s segments’ debt.

CVR Energy also announced a second quarter 2019 cash dividend of 75 cents per share. The dividend, as declared by CVR Energy’s Board of Directors, will be paid on Aug. 12, 2019, to stockholders of record as of the close of market on Aug. 5, 2019. The annualized dividend of $3 per share represents an industry leading dividend yield of 6 percent based on the July 23, 2019, closing stock price.

Today, CVR Partners announced that the Board of Directors of its general partner declared a second quarter 2019 cash distribution of 14 cents per common unit, which will be paid on Aug. 12, 2019, to common unitholders of record as of the close of market on Aug. 5, 2019.

Second Quarter 2019 Earnings Conference Call

CVR Energy previously announced that it will host its second quarter 2019 Earnings Conference Call on Thursday, July 25, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters.

The second quarter 2019 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/u8jjdt8s. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13692311.

Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: dividends and distributions including the amount and timing thereof; refinery throughput, direct operating expenses, capital spending, depreciation and amortization and turnaround expense; continued safe and reliable operations; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) price volatility of crude oil, other feedstocks and refined products; the ability of CVR Refining and CVR Partners to make cash distributions; potential operating hazards; costs of compliance with existing, or compliance with new, laws and regulations and potential liabilities arising therefrom; impacts of planting season on CVR Partners; general economic and business conditions; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the petroleum refining and marketing business through its interest in CVR Refining and the nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own 34 percent of the common units of CVR Partners.

For further information, please contact:

Investor Contact:
Richard Roberts
CVR Energy, Inc.
(281) 207-3205
InvestorRelations@CVREnergy.com
           
Media Relations:
Brandee Stephens
CVR Energy, Inc.
(281) 207-3516
MediaRelations@CVREnergy.com

Non-GAAP Measures

Our management uses certain non-GAAP performance measures to evaluate current and past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.

Effective January 1, 2019, the Company revised its accounting policy method for the costs of planned major maintenance activities (turnarounds) specific to the Petroleum Segment from being expensed as incurred (the direct expensing method) to the deferral method. See Note 3 (“Recent Accounting Pronouncements and Accounting Changes”) in the notes to our condensed consolidated quarterly financial statements for a further discussion of the impacts of this change in accounting policy. As a result of this change in accounting policy, the non-GAAP measures of Adjusted EBITDA, Petroleum Adjusted EBITDA, Nitrogen Fertilizer Adjusted EBITDA, Adjusted Net Income (Loss) and Direct Operating Expenses per Total Throughput Barrel net of Turnaround Expense are no longer being presented.

The following are non-GAAP measures that continue to be presented for the period ended June 30, 2019:

EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.

Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other.

Refining Margin adjusted for Inventory Valuation Impact - Refining Margin adjusted to exclude the impact of current period market price and volume fluctuations on crude oil and refined product inventories recognized in prior periods. We record our commodity inventories on the first-in-first-out basis. As a result, significant current period fluctuations in market prices and the volumes we hold in inventory can have favorable or unfavorable impacts on our refining margins as compared to similar metrics used by other publicly-traded companies in the refining industry. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period.

Refining Margin and Refining Margin adjusted for Inventory Valuation Impact, per Throughput Barrel - Refining Margin adjusted to exclude the impact of current period market price and volume fluctuations on crude oil and refined product inventories recognized in prior periods, divided by the total throughput barrels during the period, which is calculated as total throughput barrels per day times the number of days in the period.

Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.

We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly-traded companies in the refining industry, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” section included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.

CVR Energy, Inc.
(all information in this release is unaudited)

Financial and Operational Data

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions, except share data) 2019   2018   2019   2018
Consolidated Statement of Operations Data              
Net sales $ 1,687     $ 1,914     $ 3,173     $ 3,451  
Operating costs and expenses:              
Cost of materials and other 1,267     1,560     2,368     2,739  
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 132     140     258     271  
Depreciation and amortization 76     68     141     131  
Cost of sales 1,475     1,768     2,767     3,141  
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below) 27     31     57     55  
Depreciation and amortization 2     3     4     6  
(Gain) loss on asset disposals (9 )   5     (7 )   5  
Operating income 192     107     352     244  
Other (expense) income:              
Interest expense, net (26 )   (26 )   (52 )   (53 )
Other income, net 3     2     6     3  
Income before income tax expense 169     83     306     194  
Income tax expense 41     15     76     33  
Net income 128     68     230     161  
Less: Net income attributable to noncontrolling interest 12     25     13     58  
Net income attributable to CVR Energy stockholders $ 116     $ 43     $ 217     $ 103  
               
Basic and diluted earnings per share $ 1.16     $ 0.50     $ 2.16     $ 1.19  
Dividends declared per share $ 0.75     $ 0.75     $ 1.50     $ 1.25  
               
EBITDA* $ 273     $ 180     $ 503     $ 384  
               
Weighted-average common shares outstanding - basic and diluted 100.5     86.8     100.5     86.8  

_____________________

* See “Non-GAAP Reconciliations” section below.

Selected Balance Sheet Data

(in millions) June 30, 2019   December 31, 2018
Cash and cash equivalents $ 540     $ 668  
Working capital 675     797  
Total assets 3,830     4,000  
Total debt and finance lease obligations 1,195     1,170  
Total liabilities 2,124     2,057  
Total CVR stockholders’ equity 1,384     1,286  

Selected Cash Flow Data

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions) 2019   2018   2019   2018
Net cash flow provided by (used in):              
Operating activities $ 156     $ 212     $ 384     $ 238  
Investing activities (1 )   (29 )   (43 )   (50 )
Financing activities (82 )   (69 )   (469 )   (136 )
Net increase (decrease) in cash and cash equivalents $ 73     $ 114     $ (128 )   $ 52  

Selected Segment Data

(in millions) Petroleum   Nitrogen
Fertilizer
  Consolidated
Three Months Ended June 30, 2019          
Net sales $ 1,552     $ 138     $ 1,687  
Operating income 163     35     192  
Net income 158     19     128  
EBITDA* 216     60     273  
           
Capital expenditures (1)          
Maintenance capital expenditures $ 15     $ 2     $ 20  
Growth capital expenditures 2         2  
Total capital expenditures $ 17     $ 2     $ 22  
           
Six Months Ended June 30, 2019          
Net sales $ 2,949     $ 230     $ 3,173  
Operating income 319     44     352  
Net income 307     13     230  
EBITDA* 425     86     503  
           
Capital expenditures (1)          
Maintenance capital expenditures $ 34     $ 5     $ 42  
Growth capital expenditures 4         4  
Total capital expenditures $ 38     $ 5     $ 46  
                       


(in millions) Petroleum   Nitrogen
Fertilizer
  Consolidated
Three Months Ended June 30, 2018          
Net sales $ 1,824     $ 93     $ 1,914  
Operating income 113         107  
Net income (loss) 104     (16 )   68  
EBITDA* 164     20     180  
           
Capital expenditures (1)          
Maintenance capital expenditures $ 11     $ 5     $ 17  
Growth capital expenditures 4     2     6  
Total capital expenditures $ 15     $ 7     $ 23  
           
Six months ended June 30, 2018          
Net sales $ 3,282     $ 173     $ 3,451  
Operating income (loss) 256     (4 )   244  
Net income (loss) 237     (36 )   161  
EBITDA* 356     33     384  
           
Capital expenditures (1)          
Maintenance capital expenditures $ 21     $ 9     $ 32  
Growth capital expenditures 8     2     10  
Total capital expenditures $ 29     $ 11     $ 42  

_____________________

*      See “Non-GAAP Reconciliations” section below.

(1)   Capital expenditures are shown exclusive of turnaround costs.

Selected Balance Sheet Data

(in millions) Petroleum   Nitrogen
Fertilizer
  Consolidated
June 30, 2019          
Cash and cash equivalents $ 419     $ 69     $ 540  
Total assets 2,833     1,190     3,830  
Total debt and finance lease obligations 564     631     1,195  
           
December 31, 2018          
Cash and cash equivalents $ 353     $ 62     $ 668  
Total assets 2,453     1,254     4,000  
Total debt and finance lease obligations 541     629     1,170  

Petroleum Segment

Key Operating Metrics per Total Throughput Barrel

  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Refining margin* $ 15.66     $ 14.13     $ 16.10     $ 15.72  
Refining margin adjusted for inventory valuation impact * 15.68     13.03     15.28     14.58  
Direct operating expenses * 4.40     4.68     4.57     5.00  

_____________________

* See “Non-GAAP Reconciliations” section below.

Throughput Data by Refinery

  Three Months Ended June 30,   Six Months Ended June 30,
(in bpd) 2019   2018   2019   2018
Coffeyville              
Regional crude 49,979     28,538     45,808     29,116  
WTI 75,090     75,595     71,075     63,280  
Midland WTI 863     16,842     6,750     8,467  
Condensate 3,125     1,547     4,203     9,586  
Heavy Canadian 3,511     6,249     5,526     3,385  
Other feedstocks and blendstocks 8,083     7,543     8,685     6,843  
Wynnewood              
Regional crude 52,359     56,773     48,383     52,669  
WTI     2,108         4,514  
Midland WTI 13,410     10,739     12,961     14,922  
Condensate 7,038     7,580     7,394     5,974  
Other feedstocks and blendstocks 2,825     4,591     3,770     5,174  
Total throughput 216,283     218,105     214,555     203,930  

Production Data by Refinery

  Three Months Ended June 30,   Six Months Ended June 30,
(in bpd) 2019   2018   2019   2018
Coffeyville              
Gasoline 70,506     67,390     72,170     58,357  
Distillate 59,049     59,855     59,288     52,093  
Other liquid products 6,786     5,231     6,631     6,900  
Solids 5,113     5,267     5,042     4,758  
Wynnewood              
Gasoline 39,153     39,853     36,746     41,714  
Distillate 31,997     34,985     29,689     34,804  
Other liquid products 1,360     5,060     3,728     4,787  
Solids 33     49     31     51  
Total production 213,997     217,690     213,325     203,464  
                       
Liquid volume yield (as % of total throughput) 96.6 %   97.4 %   97.1 %   97.4 %
                       


  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Market Indicators (dollars per barrel)              
West Texas Intermediate (WTI) NYMEX $ 59.91     $ 67.91     $ 57.44     $ 65.46  
Crude Oil Differentials:              
WTI less WTS (light/medium sour)     8.50         5.05  
WTI less WCS (heavy sour) 12.63     18.02     11.59     21.81  
WTI less condensate     0.46         0.42  
Midland Cushing Differential 2.27     8.12     1.74     4.34  
NYMEX Crack Spreads:              
Gasoline 21.37     20.63     16.64     18.06  
Heating Oil 23.46     22.22     24.90     21.36  
NYMEX 2-1-1 Crack Spread 22.41     21.43     20.77     19.71  
PADD II Group 3 Basis:              
Gasoline (2.56 )   (4.44 )   (2.31 )   (3.19 )
Ultra Low Sulfur Diesel (0.93 )   (0.05 )   (1.24 )   (0.33 )
PADD II Group 3 Product Crack Spread:              
Gasoline 18.81     16.19     14.33     14.87  
Ultra Low Sulfur Diesel 22.52     22.17     23.65     21.03  
PADD II Group 3 2-1-1 20.67     19.18     18.99     17.95  

Q3 2019 Petroleum Segment Outlook

The table below summarizes our outlook for certain refining statistics and financial information for the third quarter of 2019. See “forward looking statements.”

  Q3 2019
  Low   High
Refinery Statistics:      
Total throughput (bpd) 215,000     225,000  
       
Direct operating expenses (1) (in millions) $ 90     $ 100  
       
Total capital spending (in millions) $ 40     $ 60  

_____________________

(1) Direct operating expenses are shown exclusive of depreciation and amortization and turnaround expenses.

Nitrogen Fertilizer Segment:

Key Operating Data:

Ammonia Utilization Rates (1)

  Two Years Ended June 30,
(percent of capacity utilization) 2019   2018
Consolidated 92 %   94 %
Coffeyville 94 %   93 %
East Dubuque 90 %   95 %

_____________________

(1) Reflects ammonia utilization rates on a consolidated basis and at each of the Nitrogen Fertilizer facilities. Utilization is an important measure used by management to assess operational output at each of the facilities. Utilization is calculated as actual tons produced divided by capacity. The Nitrogen Fertilizer Segment presents utilization on a two-year rolling average to take into account the impact of current turnaround cycles on any specific period. The two-year rolling average is a more useful presentation of the long-term utilization performance of our plants. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With the Nitrogen Fertilizer Segments’ efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well the facilities operate.

Sales and Production Data

  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Consolidated sales (thousand tons):              
Ammonia 110     82     146     118  
UAN 340     270     628     615  
               
Consolidated product pricing at gate (dollars per ton):              
Ammonia $ 456     $ 348     $ 434     $ 340  
UAN $ 217     $ 191     $ 219     $ 169  
               
Consolidated production volume (thousand tons):              
Ammonia (gross produced) 211     174     390     373  
Ammonia (net available for sale) 71     65     112     124  
UAN 316     241     651     580  
               
Feedstock:              
Petroleum coke used in production (thousand tons) 134     90     266     208  
Petroleum coke (dollars per ton) $ 34.60     $ 25.33     $ 36.14     $ 21.34  
Natural gas used in production (thousands of MMBtu) (2) 2,070     1,964     3,510     3,814  
Natural gas used in production (dollars per MMBtu) (2) $ 2.61     $ 2.78     $ 3.11     $ 3.00  
Natural gas in cost of materials and other (thousands of MMBtus) (2) 3,185     2,571     4,193     3,829  
Natural gas in cost of materials and other (dollars per MMBtu) (2) $ 3.32     $ 2.84     $ 3.45     $ 3.05  

_____________________

(2) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense (exclusive of depreciation and amortization).

Key Market Indicators

  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Ammonia — Southern Plains (dollars per ton) $ 382     $ 343     $ 404     $ 362  
Ammonia — Corn belt (dollars per ton) 495     396     496     412  
UAN — Corn belt (dollars per ton) 226     211     228     211  
               
Natural gas NYMEX (dollars per MMBtu) $ 2.51     $ 2.83     $ 2.69     $ 2.84  

Non-GAAP Reconciliations:

Reconciliation of Net Income to EBITDA

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions) 2019   2018   2019   2018
Net income $ 128     $ 68     $ 230     $ 161  
Add:              
Interest expense, net 26     26     52     53  
Income tax expense 41     15     76     33  
Depreciation and amortization 78     71     145     137  
EBITDA $ 273     $ 180     $ 503     $ 384  

Reconciliation of Petroleum Segment Net Income to EBITDA

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions) 2019   2018   2019   2018
Petroleum net income $ 158     $ 104     $ 307     $ 237  
Add:              
Interest expense, net 6     11     17     22  
Depreciation and amortization 52     49     101     97  
Petroleum EBITDA $ 216     $ 164     $ 425     $ 356  

Reconciliation of Petroleum Segment gross profit to Refining Margin and Refining Margin adjusted for inventory valuation impact (in millions and on per total throughput barrel basis) and Direct operating expenses per total throughput barrel

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions) 2019   2018   2019   2018
Net sales $ 1,552     $ 1,824     $ 2,949     $ 3,282  
Cost of materials and other 1,244     1,543     2,324     2,701  
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 86     93     177     185  
Depreciation and amortization 52     49     101     97  
Gross profit 170     139     347     299  
Add:              
Direct operating expenses (exclusive of depreciation and amortization as reflected below) 86     93     177     185  
Depreciation and amortization 52     49     101     97  
Refining margin 308     281     625     581  
Inventory valuation impact, (favorable) unfavorable (1)     (22 )   (32 )   (42 )
Refining margin adjusted for inventory valuation impact $ 308     $ 259     $ 593     $ 539  

_____________________

(1) FIFO is the petroleum business’ basis for determining inventory value under GAAP. Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.

Reconciliation of Petroleum Segment total throughput barrels

  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Total throughput barrels per day 216,283     218,105     214,555     203,930  
Days in the period 91     91     181     181  
Total throughput barrels 19,681,753     19,847,555     38,834,455     36,911,330  

Reconciliation of Petroleum Segment Refining Margin (in millions and on per total throughput barrel basis)

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions, except for per throughput barrel data) 2019   2018   2019   2018
Refining margin $ 308     $ 281     $ 625     $ 581  
Divided by: total throughput barrels 20     20     39     37  
Refining margin per total throughput barrel $ 15.66     $ 14.13     $ 16.10     $ 15.72  

Reconciliation of Petroleum Segment Refining Margin adjusted for inventory valuation impact (in millions and on per total throughput barrel basis)

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions, except for throughput barrel data) 2019   2018   2019   2018
Refining margin adjusted for inventory valuation impact $ 308     $ 259     $ 593     $ 539  
Divided by: total throughput barrels 20     20     39     37  
Refining margin adjusted for inventory valuation impact per total throughput barrel $ 15.68     $ 13.03     $ 15.28     $ 14.58  

Reconciliation of Petroleum Segment Direct operating expenses (in millions and on per total throughput barrel basis)

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions, except for throughput barrel data) 2019   2018   2019   2018
Direct operating expenses (exclusive of depreciation and amortization) $ 86     $ 93     $ 177     $ 185  
Divided by: total throughput barrels 20     20     39     37  
Direct operating expenses per total throughput barrel $ 4.40     $ 4.68     $ 4.57     $ 5.00  

Reconciliation of Nitrogen Fertilizer Segment Net Income (Loss) to EBITDA

  Three Months Ended June 30,   Six Months Ended June 30,
(in millions) 2019   2018   2019   2018
Nitrogen fertilizer net income (loss) $ 19     $ (16 )   $ 13     $ (36 )
Add:              
Interest expense, net 16     16     31     32  
Depreciation and amortization 25     20     42     37  
Nitrogen Fertilizer EBITDA $ 60     $ 20     $ 86     $ 33