CVR Energy, Inc. (NYSE:CVI) Q1 2023 Earnings Call Transcript

Dane Neumann: So, Paul, the $95 million is the refinery’s obligation, excluding the RIN from the RD. That’s assuming they’re just buying the RIN from the RD on a like an open market transaction. They still have to be costed for that.

Paul Cheng: I see. And also that, just clarify that, I mean, in the past, I think you have the shipping history to get about 30,000 barrels per day of the WCS and you just sold most of them at Cushing and one a little bit in the . Are you still doing that and getting about 30,000 barrels per day, which is included in your results?

Dave Lamp: Yes. Typically, we’ll get 25 on the Keystone side and 5 on the Spearhead side. But — and we are — we’re contracted for 10 on the Spearhead side. But we run it opportunistically. If it’s in the money, we will run it. And of course, we had a coker turnaround in the first quarter. So, we minimized the runs during that period of time. And now it’s basically a push on whether you run it or not just where the spreads are and what we can sell it for in Cushing. So, we’re not running any now. We don’t plan on running through the next month as long as the spread stays where it is.

Paul Cheng: Right. Final one for me. What’s the sustaining CapEx for the corporation now going forward? And that also, on the renewable, maybe I missed it. Did you tell us that what is the gross margin and the net — and the pretax income for that operation in the first quarter?

Dave Lamp: We haven’t been disclosing that until we break it out as a segment, which we plan to do probably at the end of the year or start of next year.

Paul Cheng: Okay. And how about sustaining CapEx?

Dane Neumann: Yes. Sustaining CapEx for the corporation, we’d just say, it’s $80 million to $100 million, Paul.

Operator: We have reached the end of the question-and-answer session. I would now like to turn the floor back over to management for closing comments.

Dave Lamp: Again, I’d like to thank you all for your interest in CVR Energy. Additionally, I’d like to thank our employees for their hard work and commitment towards safety — safe, reliable and environmentally responsible operations. We look forward to reviewing our second quarter 2023 results during our next earnings call. Have a great day.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.