EX-99.1 2 d296554dex991.htm SLIDES FROM MANAGEMENT PRESENTATION

Credit Suisse Global Energy Conference February 8, 2012 Exhibit 99.1

1 1 1 1 1 This presentation should be reviewed in conjunction with CVR Energy, Inc.’s Third Quarter earnings conference call held on November 3, 2011. The following information contains forward-looking statements based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. You are cautioned not to put undue reliance on such forward-looking statements (including forecasts and projections regarding our future performance) because actual results may vary materially from those expressed or implied as a result of various factors, including, but not limited to (i) those set forth under “Risk Factors” in CVR Energy, Inc.’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any other filings CVR Energy, Inc. makes with the Securities and Exchange Commission, and (ii) those set forth under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the CVR Partners, LP Prospectus and any other filings CVR Partners, LP makes with the Securities and Exchange Commission. CVR Energy, Inc. assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

2 2 2 2 2 Management Attendees Jack Lipinski Chief Executive Officer Ed Morgan Executive Vice President of Investor Relations Jay Finks Director of Finance

Company Overview

4 4 4 4 4 Pro Forma Company Overview Two top-tier Mid-Continent refineries – 115,000 bpd Coffeyville, Kansas refinery – 70,000 bpd Wynnewood, Oklahoma Refinery A nitrogen fertilizer plant using pet coke gasification (CVR Partners LP) – Rated capacity of 1,225 tpd ammonia; 2,025 tpd UAN Nitrogen – Current $100.0 million expansion ongoing to increase UAN capacity by 400,000 tons Operates in higher margin markets Logistics assets supporting both businesses Financial flexibility Pro Forma LTM Refinery Feedstock & Product Slate (a) CVR Energy: About Us Note: LTM as of September 30, 2011. (a) Pro forma based on weighted average of refinery capacity. (b) CVR distillate assumed to be diesel for pro forma. NYSE– CVI Market Cap(1) - $2.3 billion NYSE– UAN Market Cap(1) - $2.2 billion CVI owns ~ 70% (1) As of 2/2/2012

5 5 5 5 5 (b) Includes 50% interest in JV in Toledo, OH refinery. Source: EIA and Wall Street research PADD II Consolidated Refinery Statistics – By Owner “Top Quartile” Consolidated Asset Profile PADD II Refiners Well Positioned to Compete in Underserved PADD II Region

6 6 6 6 6 Key Business Drivers (1) Adjusted for major scheduled turnaround, third-party outage on air separation unit and UAN vessel rupture

7 7 7 7 7 Utilization by PADD Source: Magellan

8 8 8 8 8 CVR Energy total shareholder return Note: Market data as of February 3, 2012. Peer index equal weighted and includes ALJ, DK, HFC, TSO and WNR. CVI IPO price is based on closing price of the first day of trading. Source: Capital IQ Refiners relative total return performance CVI Refining peers S&P 500 Since IPO 32% (36%) (3%) 3-year 405% 78% 71% 2-year 230% 140% 28% 1-year 57% 34% 5% 1-month 36% 18% 5%

9 9 9 9 9 Building the business Responsive to opportunities Improving financial strength Shareholder Value Focused Increased total refining capacity to 185 kbpd Integrating Wynnewood acquisition and realizing synergies Grown crude gathering to ~40,000 bpd Expanding UAN capacity by 400,000 tpy IPO of CVR Partners Accretive acquisition of GWEC Considering regular, fixed dividend initiation Continuously evaluating alternatives to realize CVR Partners’ value Conservative leverage metrics Tactical hedging for risk management Ratings improvement to Ba3 Focus on maintaining discipline Since IPO, CVR Energy is #1 in total return among refining peers (a) and remains focused on creating value for shareholders (a) Total return based on period from October 23, 2007 to February 3, 2012. CVI total return compared to total return of refining peers: ALJ, DK, HFC, TSO and WNR.

Refining Business

11 11 11 11 11 Consolidated Supply Network Consolidated Marketing Network Extensive Crude Oil Supply and Product Distribution Network

12 12 12 12 12 Logistics Overview Operations Map Logistics Drives Profitability (a) Under construction. Located 100 miles from the global crude hub of Cushing, CVR has access to global crudes with storage to optimize purchasing and crude slates Shipper status of 35,000 bpd on Spearhead and Keystone Pipelines 40,000+ bpd crude oil gathering system serving Kansas, Oklahoma, Missouri and Nebraska 145,000 bpd proprietary pipeline system to transport crude to the Coffeyville refinery Currently constructing an additional one million barrel storage facility in Cushing

13 13 13 13 13 Overview Historical & Projected Canadian Production Historical & Projected Bakken Crude Production Access to WTI Priced Crudes (a) Source: Canadian Association of Petroleum Producers June 2011 publication. Source: Wood Mackenzie Upstream Service database Both refineries benefit from the current WTI-Brent spread WTI price-linked crudes are currently trading at historically wide discounts to crudes, such as Brent and LLS Growing production from the U.S. Bakken and Canada flowing into Cushing, OK is contributing to this differential Expected pipeline capacity (Seaway reversal) necessary to move production from Cushing to the Gulf Coast projected to move 250k bpd heavy/sour by 2013 0 1,000 2,000 3,000 4,000 5,000 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Other Conventional Oil Sands Atlantic Canada Offshore (thousand barrels per day) Actual Forecast 87.6 102.1 132.7 142.3 201.8 262.9 313.1 340.0 362.4 0 100 200 300 400 2006 2007 2008 2009 2010 2011 2012 2013 2014 Bakken Crude Production (thousand barrels per day) Historical WTI-Brent Spread ($/bbl)

14 14 14 14 14 Hedging Activity

15 15 15 15 15 Overview Asset Map Total Consumed Crude Discount to WTI Crude Gathering Gathered 7,000 bpd in 2005 Today gathering over 40,000+ bpd Growth target 10% – 20% per year for the next 2 – 5 years Texas Oklahoma Missouri Nebraska Kansas Colorado South Dakota North Dakota

16 16 16 16 16 Phillipsburg Valley Center Station Winfield (Gathering South) Plainville (Gathering North) Hooser Station Broome Station Humboldt (Gathering South) Coffeyville East Tank Farm Cushing Plains/TEPPCO Bartlesville (Gathering South) Shidler (Gathering South) 55k 2,700k Capacity 17,900 bpd w/DRA Capacity 4,800 bpd Capacity 24,000 bpd w/DRA Capacity 110,000 bpd Capacity 5,100 bpd Capacity 4,700 bpd Capacity 38,000 bpd 660k 160k 75k 200k 10k 40k 20k 20k Jayhawk/Kaw Pipeline system 150 miles 67 miles 23 miles 100 miles Plains Pipeline 20 miles 19 miles 42 miles 1.6 miles 62.5 miles Capacity 107,000 bpd 18 miles 156,000 b/d Crude Gathering System “No Barrel Left Behind” Gathered Blended Refined Osage Station 1,000k

Nitrogen Fertilizer MLP

18 18 18 18 18 Overview Fertilizer Operations Strategically Located Assets and Logistics Located in the corn belt (on Union Pacific mainline) 45% of corn planted in 2010 was within $35/UAN ton freight rate of our plant $25/ton transportation advantage to corn belt vs. US Gulf Coast No intermediate transfer, storage, barge freight or pipeline freight charges LTM Q3 2011 Total Tons Sold ~ 731,500

19 19 19 19 19 Overview Abundant Supply of Third-party Pet Coke US Pet Coke Exports and Consumption Stable & Economic Feedstock Source: EIA CVR Partners LP 2008 – 2010 average daily coke demand ~ 1,378 tons/day Coke gasification technology uses petroleum coke as a feedstock – Pet coke costs lower than natural gas costs per ton of ammonia produced, and pet coke prices are significantly more stable than natural gas prices – Over 70% of pet coke supplied by refinery through long-term contract Dual train gasifier configuration ensures reliability Ammonia synthesis loop and UAN synthesis use same processes as natural gas based producers

20 20 20 20 20 Market Fundamentals Farmer Profitability Supports Fertilizer Pricing Corn consumes the largest amount of nitrogen fertilizer Farmers are expected to generate substantial proceeds at currently forecasted corn prices Farmers are still incentivized to apply nitrogen fertilizer at corn prices lower than current spot Nitrogen fertilizer represents a small percentage of a farmer’s input costs Corn Spot Prices Breakdown of U.S. Farmer Total Input Costs Input Costs and Prices per Bushel ($) Other Variable Costs 13% Seed and Chemicals 18% Fixed Costs 48% Avg. % Total of Cost: Corn Futures Prices*: 30 Day: $6.52 12 Month: $5.93 Note: Fixed Costs include labor, machinery, land, taxes, insurance, and other. Fertilizers 21% *As of Feb. 4, 2012 Source: CIQ *As of Feb .4, 2012 Source: CIQ, USDA 2.60 2.97 3.10 3.68 3.53 3.71 - 1 2 3 4 5 6 7 2005 2006 2007 2008 2009 2010

21 21 21 21 21 Market Fundamentals Strong Pricing Environment ($ per Ton) Historical U.S. Nitrogen Fertilizer Prices 0 100 200 300 400 500 600 700 800 900 1,000 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 Ammonia $686 UAN $352 Southern Plains Ammonia Corn Belt UAN 5-Yr Average Southern Plains Ammonia Source: Green Markets Data, Fertecon 5 Yr. Avg. UAN $163 5-Yr Average Corn Belt UAN 5 Yr. Avg. Ammonia $283 5 Yr. Avg. Ammonia $493 5 Yr. Avg. UAN $312

Financial Highlights

23 23 23 23 23 EBITDA by Operating Segment ($mm) Capital Expenditures ($mm) Refining Margins and Expenses ($/bbl) Fertilizer Prices ($/Ton) Key Historical Financial Statistics CVR Energy Standalone

24 24 24 24 24 Adjusted EBITDA ($mm) (a) Capital Expenditures ($mm) Refining Margins and Expenses ($/bbl) Total Throughput (bpd) Key Historical Financial Statistics Gary Williams Standalone (a) Adjusted EBITDA represents GWEC operating income adjusted for FIFO impacts, major scheduled turnaround expenses, realized gain and losses on derivatives, net, depreciation and amortization and other income or expenses. (b) Adjusted refining margin per barrel is equal to gross operating margin adjusted for FIFO inventory gains or losses divided by crude throughput.

25 25 25 25 25 CVI Operating Expenses (a) ($/bbl) LTM Q3 ‘11 Operating Expense ($/bbl) Combined Company – Controlled Operating Expenses (a) Excludes turnaround. CVI PF GWEC based on weighted average crude throughput. (b) HFC combined results from legacy companies 3Q 2011 report.

Appendix

27 27 27 27 27 Pro Forma Organizational Structure CVR Energy, Inc. NYSE: CVI Market cap: ~$2.2 bn Coffeyville Resources, LLC Fertilizer business CVR Partners, LP NYSE: UAN Market cap: ~$1.8 bn Refining business ~$809 mm LTM EBITDA Public shareholders Public unitholders 100% 100% 100% GP 69.7% LP 30.3% LP Wynnewood Refinery (GWEC) (Wynnewood, OK) Coffeyville Refinery (Coffeyville, KS) 100% 100% Represents Acquisition $400m ABL due ’15 $447m 9% 1 st Lien notes due ‘15 $223m 10 7/8 % 2 nd Lien notes due ‘17 $25m cash flow revolver due ’16 $125m term loan due ‘16

28 28 28 28 28 Non-GAAP Financial Measures To supplement the actual results in accordance with U.S. generally accepted accounting principles (GAAP), for the applicable periods, the Company also uses certain non-GAAP financial measures as discussed below, which are adjusted for GAAP-based results. The use of non-GAAP adjustments are not in accordance with or an alternative for GAAP. The adjustments are provided to enhance the overall understanding of the Company’s financial performance for the applicable periods and are also indicators that management utilizes for planning and forecasting future periods. The non-GAAP measures utilized by the Company are not necessarily comparable to similarly titled measures of other companies. The Company believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures (i) together provide a more comprehensive view of the Company’s core operations and ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial and operational planning decisions, and (iii) presents measurements that investors and rating agencies have indicated to management are useful to them in assessing the Company and its results of operations.

29 29 29 29 29 Non-GAAP Financial Measures (cont’d) EBITDA: EBITDA represents net income before the effect of interest expense, interest income, income tax expense (benefit) and depreciation and amortization. EBITDA is not a calculation based upon GAAP; however, the amounts included in EBITDA are derived from amounts included in the consolidated statement of operations of the Company. Adjusted EBITDA by operating segment results from operating income by segment adjusted for items that the company believes are needed in order to evaluate results in a more comparative analysis from period to period. Additional adjustments to EBITDA include major scheduled turnaround expense, the impact of the Company’s use of accounting for its inventory under first-in, first-out (FIFO), net unrealized gains/losses on derivative activities, share-based compensation expense, loss on extinguishment of debt, and other income (expense). Adjusted EBITDA is not a recognized term under GAAP and should not be substituted for operating income or net income as a measure of performance but should be utilized as a supplemental measure of financial performance in evaluating our business. First-in, first-out (FIFO): The Company’s basis for determining inventory value on a GAAP basis. Changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in favorable FIFO impacts when crude oil prices increase and unfavorable FIFO impacts when crude oil prices decrease. The FIFO impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period.

30 30 30 30 30 Non-GAAP Financial Measures (cont’d) CVR 9/30/11 LTM Adjusted EBITDA ($mm) LTM 9/30/2011 Consolidated Net Income $282.2 Interest expense, net of interest income 53.8 Depreciation and amortization 88.1 Income tax expense 181.5 EBITDA adjustments included in NCI (3.4) Unrealized (gain)/loss on derivatives 9.8 Loss on disposal of fixed assets 2.9 FIFO impact (favorable), unfavorable (30.4) Share based compensation 52.4 Loss on extinguishment of debt 3.6 Major turnaround expense 16.5 Other non-cash expenses - Consolidated Adjusted EBITDA $657.0 Fertilizer Adjusted EBITDA 121.7 Adjusted EBITDA excl. Fertilizer $535.3

31 31 31 31 31 Non-GAAP Financial Measures (cont’d) CVR Adjusted EBITDA ($mm) Petroleum: 2008 2009 2010 LTM 9/30/2011 Petroleum operating income $31.9 $170.2 $104.6 $529.5 FIFO impact (favorable) unfavorable 102.5 (67.9) (31.7) (30.4) Share-based compensation (10.8) (3.7) 11.5 17.1 Loss on disposal of fixed assets - - 1.3 1.5 Major scheduled turnaround - - 1.2 12.8 Realized gain (loss) on derivatives, net (121.0) (21.0) 0.7 (24.7) Goodwill impairment 42.8 - - - Depreciation and amortization 62.7 64.4 66.4 67.8 Other income (expense) 1.0 0.3 0.7 0.5 Adjusted EBITDA $109.1 $142.3 $154.7 $574.1 Fertilizer: 2008 2009 2010 LTM 9/30/2011 Fertilizer operating income $116.8 $48.9 $20.4 $84.0 Share-based compensation (10.6) 3.2 9.0 14.1 Loss on disposal of fixed assets 2.3 - 1.4 1.4 Major scheduled turnaround 3.3 - 3.5 3.5 Depreciation and amortization 18.0 18.7 18.5 18.5 Other income (expense) 0.1 - - 0.2 Adjusted EBITDA $129.9 $70.8 $52.8 $121.7

32 32 32 32 32 Non-GAAP Financial Measures (cont’d) (a) Includes disposal of assets, asset impairments, discontinued operations and fire related adjustments. GWEC Adjusted EBITDA ($mm) GWEC: 2009 2010 LTM 9/30/2011 Net income (loss) $52.5 $16.1 $161.6 Income taxes - - - Interest expense (net) 12.9 22.4 28.6 Depreciation and amortization 13.8 14.7 17.2 Hedge mark to market loss (gain) - - 37.9 Turnaround amortization 15.4 13.8 13.1 Non-cash inventory loss (gain) (57.9) (19.6) (23.1) Other unusual or non-recurring items (a) 0.1 - (0.2) Adjusted EBITDA $36.8 $47.4 $235.1