CVR Energy (CVI) 1 Aug 232023 Q2 Earnings call transcript

Greetings, and welcome to the CVR Energy, Inc.

Second Quarter 2023 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Richard Roberts, Vice President of FP&A and IR. Mr. you, Thank begin. may Roberts, you

Dave Thank members you, you Energy very appreciate Financial today everyone. Quarter Dane Executive Neumann, our management. Good us this afternoon, Chief are me joining With CVR and Earnings We our afternoon Chief XXXX Officer; other much Officer; Call. Camilla. Lamp, of for Second our

is securities contain let that this you to our forward-looking as Prior statements remind discussing federal XXXX me second defined that term call laws. quarter may under results, conference

purpose, deemed this during call forward-looking For statements any this historical that made of statements facts are statements. to not may be be

earnings are set statements forth You Securities may factors filings our by latest with the important and these release. that in Commission and be cautioned Exchange affected our in

actual a differ results may information, result, of a to materially statements. undertake results as or in future discussed or extent update except no operations whether result law. the publicly statements, We to by obligation forward-looking the the otherwise, required new events forward-looking from any As

quarter filed also non-GAAP and period are non-GAAP most release XX-Q financial such disclosures to to related reconciliation will XXXX including and we SEC discussed for measures, comparable various call our second in call. be GAAP that financial directly includes included with measures. measures, the the The This the earnings Form the during

to over With call I'll Dave. that the turn said,

call. Yesterday, of quarter and second the Richard. everyone, million $X.XX. million. for reported Thank our and we afternoon, $XXX for Good earnings consolidated you was EBITDA you, share of net thank quarter per earnings $XXX income joining

spreads. in the continued for quarter by results strength Our gasoline crack and diesel driven solid were

share. share, shareholders the authorized the XX. Board per the on of We to of the dividend $X which close are quarter be addition to August has of announce in of is August record both on Directors XX of pleased a $X.XX market This dividend to special will paid regular second of that per at

X.X%, approximately price, based among is refiners. dividends, remains best-in-class special independent excluding yield, the and closing on dividend annualized Our yesterday's

of In our product approximately we Petroleum oil segment, XXX,XXX barrels turnarounds planned early combined at total the and yield do quarter are coker day process. additional on We light not currently planned throughput per was have remainder in XXX% April, Coffeyville crude the for XXXX was second the the completed turnaround any of for year. and

solver we Wynnewood during quarter, in the Although refinery gasoline hydrotreater the at to able was the consuming a run at impact were operations fire experienced a and minimal, without hydrotreater credits. the plant we at to by operation the

repaired in We back to have next service hydrotreater and the in week. the expect

this small small to refinery crack Benchmark and stay first cracks. already XXXX. slightly the Benchmark spreads Last We've court soon. recent EPA the XXXX high of followed per at very remained but RIN declined expect barrel. remained the denied petition X misguided Wynnewood's lawsuits denial ridiculous their path related once down continued waivers second quarter and Circuit the challenge per averaging for a $XX.XX for denial -- small again, Group refinery quarter, we received most month, the for stubbornly Fifth exemptions, from prices during refinery over petitions XXXX, including to through and exemption $X Wynnewood's elevated with barrel. X-X-X from and

continue the from rights our we the protect stated, Wynnewood we RFS harm will like written April, renewable XX is economic the catalyst completed refineries and As to processed disproportionate to. Wynnewood unit second the second of RFS gallons have oil feedstock approximately continually at quarter. for regulation, we in believe and diesel vegetable change We fight was specifically by to small regulation entitled caused in we million a Wynnewood that

with most providers catalyst the switched change. also We recent

the slightly seeing quarter. we far, from the throughput lower HOBO we improved yields. volumes, to diesel results saw relative and spread previous in despite improved renewable are The again once quarter increase an so the And first

is a our Other Corporate our in segment. diesel and business currently reported renewable As reminder,

Fertilizer segment, ordering the utilization of quarter, customers. prepay more Fertilizer to both XXX%. ammonia summer the decline quarter fill second continued with our the well facilities recently prices. both In sold prices second volume ran We a although completed during we the during in and first from than of at rate higher the quarter XX% fall quarter consolidated ammonia

have into the fall. good book order We heading a

me call turn over our discuss the highlights. Dane Now to let to financial

afternoon, good and Dave, you, everyone. Thank

our share For $X.XX $XXX consolidated the was earnings million, XXXX, and was net income was million. second quarter per EBITDA of $XXX

derivative outstanding inventory RIN unrealized losses valuation $XX of $X obligation impact Our mark-to-market of and unfavorable on second million, negative million. of results $XX million, a quarter included estimated our

Excluding the in the Mid-Con. adjusted earnings the Adjusted per million product was in quarter for $XXX above-mentioned for quarter, and strong the items, the $X.XX. was Petroleum driven second cracks was $XXX million share segment by adjusted EBITDA EBITDA

per the realized on rate quarter a second impacts X-X-X barrel, Our $XX.XX valuation, derivative capture margin losses, inventory Group mark-to-market XX% adjusted was unrealized and benchmark. representing RIN for X

at for rate quarter on $X.XX. our average or accrued the XX%. the price RFS negatively balance sheet at the excluding was mark-to-market June an approximately RINs million the barrel, capture for impact impacted by $XXX expense was million RINs which obligation XX, of representing per $XX $XXX quarter, estimated million $X.XX The mark-to-market

outstanding any RIN our small As the obligation of estimated excludes refinery exemptions. impact a reminder,

compared were second second declared operating to direct segment for nitrogen due million $XX common relative barrel Direct offset the and quarter, expenses. quarter gas the to the expenses a XXXX. of production was $X.XX $X.XX by offsetting The XXXX. the in Fertilizer to in with somewhat quarter of higher and decrease fertilizer for Adjusted in of Petroleum quarter second second XXXX. EBITDA quarter partnership in the $X.XX quarter lower natural the barrel primarily of operating prices, somewhat in was repair prices the per strong electricity The expenses the maintenance per for decline second for distribution the segment per unit

by paid units common approximately CVR of operations was $XXX and will first the Partners XXXX million. flow of portion cash cash of and million, for capital taxes spending, $XXX was million receive of XX% of for second Partners' quarter million $XX provided quarter approximately a million. owns distribution free and interest Significant cash of million Cash proportionate $XX Energy included CVR quarter first distribution, paid uses and turnaround cash the for for dividend. noncontrolling quarter CVI interest, the paid the CVR $XX the million $XX $XX in

$XX Petroleum $X unit spending the Total in consolidated included in capital for on Fertilizer quarter segment, the pretreatment $XX which the million million RDU. spending was was in second $XX $XX million, million. million segment, the the Turnaround

$XXX total million spending turnaround million to XXXX, approximately to million $XX full year capital estimate $XXX consolidated million. be For and the we $XX spending to be to approximately

balance of balance was of Turning Wynnewood's outcome to our of the RIN maturity are segment. of with sheet. levels $XXX we for in which hold related the facility senior the of XXXX, to million, await primarily small million, $XX light growing liability the as cash quarter currently approximately million a $XXX as a offset the availability We liquidity in Total $XXX and consolidated under of $XXX higher potential to Fertilizer was upcoming XX, In million. we order of intending which in balance exemptions. the on million to note refinery includes losses cash sheet of June excluding comprised ended Partners, cash the ABL CVR of the cash

quarter Looking ahead third of XXXX. to the

estimate to segment, and barrels range $XX approximately we total Petroleum For operating expenses day, per capital XXX,XXX million $XXX throughput direct between total to million. between million, XXX,XXX spending to $XX million be and be to and our $XX

be XXXX million million. inventory third ammonia our For $XX quarter segment, XXX%, $XX and approximately between spending XX% excluding between $XX $XX utilization be expenses we and to the to estimate operating impacts, Fertilizer to to be total million, and capital million rate direct

total total between and to third capital and million. million XX XXXX For approximately gallons, quarter throughput estimate $X million operating million million, between be expenses spending $X to be $XX renewables, million to to $XX we direct be XX and

With that, over turn back the Dave, I'll you. to call

as contributions Thanks, had segments. well. quarter another we business solid Refining Fertilizer strong of renewable both diesel and with Dane. improved the saw results We In quarter from the summary, with another

driving our the about near-term paying we underlying be look are business, As we and outlook, our shareholders. pleased at to another to fundamentals dividend we are the optimistic special

the Refining, with the below during the below or U.S. year. the cracks. nearly and in decline cracks the in offsetting in the half at ranges, at in demonstrating the elevated of reduced spreads with activity gas remained end first quarter, range of distillate outages of impact or the of in capacity increase low turnaround Starting of remain XXXX, quarter the unplanned second five-year Refined five-year inventories the crack the refining product heavy

XXXX. of above X day diesel million Product since gasoline from out levels strong has in March. been inventories continued also have Gasoline trending averaged U.S. which of demand of have exports per barrels over first and the in the the half United States, XXXX benefited

X% average. Slowing most has Although in areas diesel lower been diesel on year. freight, has concern primary all this above with rail, of of the demand been and of the demand year one movements truck market down for the by

to have increase recently. started freight rates Although

out over second our new item hedging refined on of continue On is entered capacity in year, U.S. program other last of we have the The world products quarter. that the realized the earlier we into generated the around and the million which of to this call, highlighted watch gain exports refining a I earnings of start-up the impact that may $XX

XX% approximately our volumes second XX% expected the of For have for gasoline headed, we hedged. and we and production of half 'XX, have approximately diesel XXXX,

have our attributed commercial first continues side, Shale around per States in day, spreads a levels, very -- the production at spread. continue at continued crude be and quarter, exports Crude over partially second per we've United which barrels exports WCS running and inventories crude million day. been activity have slowly we out narrow five-year little to the grow can as of of averaging to the 'XX. volumes the result. in the sustained to been level supports above a Coffeyville equation, elevated the XXX,XXX U.S. barrels turnaround believe and Heavy Brent-TI averaging also X this increased oil the crude gathered average in oil On remained half of moved

We some projects refining continue on discussed progress we in the have of calls. to previous make

alky We to capacity for catalyst -- increase barrels with day at the an completion our unit the XXXX. replace will the This a have solid per refinery alkylation Wynnewood with project our as acid well. X,XXX permit by Alky in received HF in change expected a

could our our our to We by within refineries increase XX% two distillate yield distillate total yield three the projects, continuing from per day barrels X,XXX to we two over XX%. improvement approximately today yield years. are which or approximately also would diesel from progress This believe increase years

are years inventories declined Nitrogen gas decline and significant Europe, segment. the fertilizer over lowest the recent U.S. to due the We part need customers. the believe to fall the months. In further to prepay customer summer the coming fill Asia, the levels ordering in in July, at be from fertilizer in both the prices replenished in quarter we and now in Turning natural second ammonia and UAN prices completed will the we

a have seen we With the reset our products the recent and in prices, in for UAN believe saw ammonia. strong we pricing and demand bottom

we value off announced transaction our appropriate our with June, Partners decided concluded potential LP GP deliver and the pursue evaluation and to spin concluded we associated to Board that transaction not complexity the In conditions. time. Ultimately, not CVR may transaction at of this current the the in the under Board the interest

of continue will CVR unique on capitalize assets and to to ways CVR We Partners. explore Energy

the PTU on is progressing. construction renewables, in Finally,

of delivery expected However, date fourth have XXXX. the delays to equipment the of shifted in equipment quarter in-service the

with past partnering -- in interested preliminary months few for discussions have on that location. a various option months, we SAF the project production be an may had renewable past three at parties Coffeyville our Over diesel potentially the with

initial than as at -- currently look the ways to contemplating We received still variety We are the additional to we this at are in taking -- Coffeyville as so forward we preliminary at from larger refinery. we we look of But to the we of -- existing able facility explore infrastructure the utilize providing take look economies a would as potential Wynnewood be of explore phase significantly for Discussions discussions. to some to at interest scale. far, the look a had partners. progress of advantage I these details like point. for have of also

WTI. the per are cracks $XXX with of Group XXXX, at third at Midland averaged quarter-to-date per have ton Looking ton. UAN follows: barrel, quarter $X.XX metrics prices as a of fertilizer $XX.XX and over X-X-X $X.XX are differential and Brent-TI spread is per $XXX the From approximately

$X.XX $XX.XX $X.XX WCS As barrel. under per WTI was were of barrel. X-X-X cracks $XX.XX barrel. and yesterday, RINs Group were approximately per Brent-TI X was per

We opportunities business. and environmental, grow and our plants continue in to strive to to operate explore safe, manner renewables our reliable, to responsible

We continue underpins yield. our flow, which focus dividend free cash peer-leading on to maximizing

With for ready that, operator, questions. we're

[Operator Instructions].

Company. Our first from proceed with Pickering, Please Matthew your Blair Tudor, question with Holt & is question.

be my you I you the hear Hi, I that realized looking maybe your have I on Dave. higher? on the Thanks hedges. million Did mark gain only a on you. want for bit probably to have little QX would circle today, higher. the question. guess back to similar was And do comments results. crack taking strong if it Thank the you We was to a gain Congrats thought quarter? correctly little or $XX that product portfolio sense whether a something a bit in

around activities but that at quarter has is crude shifting underwater That we're other we of directly that in have, a from correct. if hedges. this products. you point. had That our a right hedging But some and number We crack third mostly the though. is bit, other now, increased the portfolio look the way million $XX at the Well,

Some that 'XX of backwardated we it's in months hitting us the pretty [ph] front really as are are really in still general, market, the hard. water. and But you cracks heavily is know, above the have

CapEx? Okay. project, have you're the you size here. Makes on the Coffeyville then in But guess, you on both a talk terms the or it conversion can more any the share well partial of be details a in of RD And you'd be partner do just more what could sense. if then be Would clarify, of appreciate stages to as a the would potential be capacity project, this of would early I you refinery? like maybe potential And I feedstock still of And as project? a type financial Or for? about greenfield looking of also that partner? partner this more

I past -- best talk option -- looked brownfield, heard greenfield, case, get would conversion as pretty refinery, We've bigger. in you've hard proximity the about at more any the when that really at Sure. think pay I be it economics it But the with some Well, at the did be The kind Wynnewood doesn't I wouldn't this it in are all doing the to us there synergies to we of call of you out. would you refinery. always call and more is what it build and better -- scale, in Coffeyville. get

limited no not at So, only but is we're rail to it, Coffeyville what's than in access, itself. largely vessels or practical like building into upsizing looking XX ship is by bigger that. diameter feet that's which usually something

So, type to and think what's looking for fairly should the above. really decide partners much larger pricey we in than project something at we're of the is This all we're looking of do Wynnewood it. I a are

submitted. The having the the estimate levels and a first really on, activity to put it doing getting by of permit full cost around the are design, doing land

don't mentioned, we interested who had open But this conversations look in and be. on with have that at we construction in try position we partners might to venture. lot -- have, that, people we're we have with joint our of until as this investing really we'll Wynnewood of to the are wide a monetize So, pretty space

might structure we it. However,

is question. question Please Manav your UBS. proceed next with Our with from Gupta

outage would an if hydrotreater, Good was tell at results the there that one morning, know Very guys. refining there's didn't strong no way results that. gasoline the you

not what been understand results know it And because we happened, even better would you outage yesterday? saw if was would do kind around us manage the help how -- actually so than this well So, have there of some we outage? had

at our in have at time know, sulfur balance long -- on treats monetize the hydrotreater, wouldn't a a where credits takes generated credits. are and basically the and which value. sheet meet been zero both quite fire down We gasoline this occurred Wynnewood for gasoline was And specs. as We've during to Coffeyville X those all credits unit Well, Tier some significant of those running time. that you that and those

see the financials. didn't much you So, impact on

are could hurt credit, those sold, we have sold We we in because $X,XXX could selling right bit which those and now have are per a future. we -- credits around are the little

some did in ways. it impact So, us

rates the to full though crude we that off pretty it cause that fire beginning high we inventories as of a up. we disruption had even I will short of rate to but weren't well we did either. the However, the did back first that the impact in period our for time, inventories we towards until got a at run at at Coffeyville able quarter, back you, those too, control, up catch had were finished remind coker turnaround we Coffeyville

Perfect. I quick follow-up. just have a

you're point, for would can you Or mentioned, the units? prefer understand I and at that you're say, single this partner for assets would various in partners looking limited looking are a who different both potentially RD you two As you the at options, comes different assets? what actually you but be in partner for refining

Well, renewables restructured that as company we to spend that break separate you ultimately can know, if do. idea out scale think we could we the that we with a company our build we as the

year is with what XXX really think type million, half company of that, of of probably SAF. we're million, this partnership probably XXX multiple because I would of at and be So, probably size the looking parties renewable of gallons some diesel a

and it's cap. So, a decent sizable venture market a

restructuring. us activity. think a this stand-alone why So, has And of the it did pursue it precisely we be type is to This allow the to we company. -- this potential will

and us the ability good So, something in this a we ag lot which as BTC any types. all a speed. plants, close the CI Coffeyville is is on know, kind that corn allow like fairly to to We it's because we would to financial. us want sort come I you to feed, proximity advantage might we in has make, belt right say. want love We'd really BTC, of want help capture to a build of We I'll low source location think oil enhanced strategic, and SAF think its somebody ethanol material of

it's we're exploring we'll and it's really alternatives still be what are. open, the early, So, but all just wide --

next with Please Royall Our your JPMorgan. John question. question from with proceed is

Thanks for good my afternoon. question. Hi, taking

kind remarkable about So we're environment type calls, perhaps the now, a bar And Is with I've to I you've talked were. strong think special are of where very forward. past specials and on see environments? in you paying dividend, the particularly cracks right do the maybe just Dave, July payout a on Or policy? in that going something gasoline asked remarkable to needing couple environment XXX% like still out they more shifting towards policy only of

shareholders. all we think but investment down buying That value-added maintain cash pressing make only is profile price debt we've sense equation immediately, -- they're will we we those do we And targeting going And really that unitholders, is at buybacks it don't don't today, DNA. And here any have us. quarter. on our our every look whole returns anything and is and units, be are where us the forward. cash to stock on drive to buyback shareholders when by our that's in day debt, options told the to where I our every stock repurchasing and cash and focusing you stock -- generation is attractive to free our returns flow above-average Well,

on you, pretty would back The almost go, was cracks crack I As look $XX is RIN on was Today, and 'XX refining. $XX. a it RIN-adjusted a RINs it's if an which adjusted around around on far five almost was was year you XXXX, for back $XX. and gas as basis, to we're on $XX good an Adjusted for today, looking in years tell Diesel $XX unadjusted $XX, basis, $XX, basis $XX, $XX. basis. at on unadjusted back the an

was. So, it quite is is little very was what 'XX 'XX gasoline in -- as but they're less not fairly than remarkable. a diesel They're much what stronger than

would still in in years you, my at they're XX least So I this remarkable, business. pretty of tell experience

time. at cash, to If where that shareholders. all put. good the the back quarter, have options, going to going decide go a investments to the what have we we're it's -- return, and every did And we when Board something that's high don't to this exactly we So, or looks is

it That's then Thanks, the looks so. forma $XXX your is about very million helpful. balance or same lines. along the cash And maybe like Pro for special,

wanting with here. you additional about talked cash And hedge have to from Do mind? thinking balance to hold any that levels minimum cash You that have there? in you're is you the on hold there that impact now higher from a right program of

I'll grab one. Yes. this

will RIN crude cash, particularly on $XXX we to a So, balance just based price. cash balance million as driver little say commodity the not primary in range. is And $XXX talk we'd minimum grow levels, short, there cash pricing excess minimum allow our focused more. fluctuate on for Today, much the to heavily to about is our million holding the Wynnewood

cash, position. really when become just we that after that 'XX any the excess available on for growing balance short that potential rest would cash. to we'd the So, it's And talk cover want

Thank you.

Good.

you. Thank

question next Our from Mehta Please proceed Goldman with your with Sachs. Neil is question.

good Dane here. Congrats great on a Neumann. Yes, morning quarter

your and but East dislocate Obviously, The from thoughts Coast Gulf can Coast. strong first seeing cracks just is everywhere, Mid-Con on the sometimes we're Mid-Con question market.

through about demand to different considerations, maintenance, profile, maybe the as go back and, So, talk the between we thoughts and the just Brent your you half spreads of year, course, of the want WTI.

demand the Magellan the it Sure. -- if Well, all. hasn't very on much when think down mentioned at diesel. changed U.S. on is a I though the basically had Even bit at look you I system, we

do in point typically opens the Harbor. then happens positive You up And to of of have that has a all quarter, that and it seven ARB little New the at backwardation risks back market. had and the in since Coast come a when into can't out you lot a been been because to severely blew come in a numbers barrels versus days And bit hesitant Mid-Con. that actually, have Products but the backwardated, little the between the the just Mid-Con, is adds see shipping meet and what we negative Gulf the time. pipeline basis to of York us. bit They've

that's So, limited. been

So, been good the the margins in group. have very

the think in quarter, to premium I And than better it, let even see the we regular. premium been somewhere, that. $X.XX second has averaged me Numbers about

no as barrels, for no open at trouble trouble So, can. all make. premium very much making moving we it's a kind And increases any we really of market really, as could been production

question. Sorry, I of forgot rest the your

side was Just as RIN the on WTI on great well, but crude that the product.

Yes. On number. Brent-TI, the I think wells, said you pretty area, oil, what that we're that they're -- up so, in still it hit several during our our somewhere think that And COVID, did pipeline some I shale we up -- rate, we've have which shale can it is farming – to E&P in bottomed always on XXX,XXX coming in we were right see actual production we're big-sized at makes activities XXX barrels and and of drives companies there.

shore. with in happening. of pretty So, force $X $X of it's to that market necessary Brent-TI exports hanging to the million off tight, seem And there be still that the is

shale that So, Gulf have is -- heavier production that that crude where offshore. point of is view has go mainly it crude to all the Coast long is maintaining this light we still as since as refiners oil

here, to but perspectives about you RINs I on Dave, have your RFS. every ask do get animated markets don't want to then, I on and quarter And the

RINs community for of figure forward as that biodiesel looking And out to try investment next and what ethanol are the what means evolve -- see how be should refining here? as an on we thoughts to your we can sector? of this the kind sort things Just

as many away, years. whole totally EPA just came blend new the many, Well, small they that actually and again a And complete I well like this this fired does bios. frankly, that get -- the for for mandate the mismanaged know. wall, above It a encourage Neil, me what? trying ethanol You're you with should or the has another you putting if RVOs out, it the feel advanced mistake DX the seems system prices have here? BTC to just pretty keeping a to diesel the me. DXs Frankly, renewable numbers, to production did high up, the trying What DXs should and I see and to goes be And continue cheap, to just you'll go SAF. or higher DX consumer $X.XX to of RIN even the are be pay to encourage expensive. think keep lot make gallon

me fuel seems lowest it's carbon they it just everything that -- both going But to So, Climate we their and RVO encourages talk there. out mouth. put to change the more is do of probably of sides it. huge, -- out can't an out to do we're yet, liquid

much we So, as a open which the the means volumes, which as helps surge we're biodiesel, long rack Wynnewood less have -- far situation. more future, and with our think big to just pretty buy in DXs I we've blend seen us ethanol in the market, and

bad. our RIN. RD be we long plant did think like very position at something Coffeyville, a is don't If I we'd So, big

So, placement and in projects our or product our strategy investing improve assets side. than our maintain feedstock and the invest our renewables improve of our hasn't supply, refining still other capture, minimizing in We're what changed. value we any that

definitely much. an so before it understood. of It's was you for issue less Yes. Thank than guys, you but

Thanks.

you. Thank

next is Paul Cheng Our question with from Scotiabank.

couple quarters that's if to we're the your also next how is the over I I Thank say, or the have case, RD then going look that of second-quarter obviously, and margin, it to going what is will think in that is you. Dave, know trend first, may assume transcript. you the apologize, me let profitability, you it at if planned? mentioned you I Have please late address to LD the the already indicator came so is

on mention was better and R&D numbers than haven't first first was we the any published that Well, but quarter the did quarter second the profitability, profitable. quarter, we

looks PTU on $X.XX, to long-term we're to and maybe margin. change. So, went the ramp around market, current add $X.XX, comes in to oil continue and us. is catalyst $X.XX actual our we it's to the that true will $X $X.XX quarter, to per-gallon be and fourth to anticipating our second somewhere And of up $X.XX through and -- that the soybean view $X.XX, in margin, still

running Thank lower CRP -- currently you I think running oil you or are stock? soybean that this are all some

oil, do but oil, treated most is some corn We run corn soybean of oil it today.

shifting PTU will more be oil as bring corn the We to on. we

just you better I to of you terms that the I'm looking get a Since trying revisit management years number sell a there's then that And your economy right. in have merger guys the or ago curious, whether of active in scale you of partner. of the number think have refining a mean, peers, pretty companies, a that -- -- for can company I so changed that worth business? has All it's

a Well, at equation, We're we assets in consolidate all a selling the kind refining. gotten we're to we've point we're I to know, of buying of form where at don't some looked you our renewables think -- on assets in know, And I the be but you sides anything but looked or really we've as future-wise, think could focused consolidator. -- fashion. more Paul, we

and out problem lot it's is uncompetitive the could that's at be in thing reduction aren't tough with fossil years, a fuels. XX you're pretty there compared a XX growing. you then last just to I'll carbon really the IRA. years, great what The other field. of with with it opportunities any And -- even a that assets tell left There

three when it to horizon. short kind it's years anything. four of to you that to got takes you've So, that investment difficult build And make

metrics or for I buyback guys dividend? management doesn't So, today's I'm price on should buyback, buyback you buyback that make at for dividend? sense and you Earlier you? kind determine you decide say or that when share heard to special go the whether to you special make sure Board that you the and using of when -- to whether want what are And a then to the maybe you go trying

a I shares, more to -- in buybacks that's about. at that's maybe Well, that than that's that how it's us the number for is complicated, of now, sense. to And make I price long the accretive if think haul. But lot but but higher difficult we're reduce Paul. just share buybacks where cheap, today, little It's the $XX not really at we're of a see share

your the me. that charge have get yourself the able a Okay. just excess to probably from a here. you balance of quite money. then strong because So, And how deal view? for cash. you actually be that and offtake when and when excess offtake have may deal save enough they get A you for that from pretty final that it sheet from sense that agreement manage fee, looking you're sign just they of at to if is X off-balance financing cash make and an cash, and inventory peers the out or you one kind high? to basically is frankly that there to Try agreement curious you sheet actually you new inventory is inventory Do addressed your Does it on that able will and do be have to that,

agreement. having We signed take just they lot Paul, I'll this by be with a having in the the any to new place, management. credit cost program of did help don't overwhelming a us and find intermediation Yes, actually means, one. We enjoy

to just are we of other at time happy again, where are front. look from remediation we've is it that benefits very there outside to we're manage our And It this time, at having we on we'll at. enjoy headed inventory. time. something the But So, about looked

right, you. thank All

Thank you.

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

all you CVR thank for your to interest Energy. like in I'd

safe, commitment work earnings and to hard reviewing and environmentally day. our like call. look quarter great Thank our responsible results at I'd and you, XXXX thank next third to a have forward Additionally, We for reliable, their our operations. employees to

teleconference. concludes today's This

participation. at your Thank for your this lines You you time. disconnect may