CVI · CVR Energy, Inc.

CVR Energy’s Q1 2026 results reflect a sharp deterioration in GAAP net income—$192 million loss versus $123 million in Q1 2025—primarily driven by $158 million in unrealized derivative losses tied to NYMEX crack spread swaps. Notably, these losses are non-cash and offset by $447 million in locked-in value expected to be realized through 2027, a key strategic hedge against energy market volatility. While the Petroleum Segment posted a larger net loss ($193M vs $160M), its refining margin turned positive ($0.12/bbl vs -$0.42/bbl), signaling improved realizations; however, adjusted refining margin declined to $4.72/bbl from $7.72/bbl, suggesting higher direct operating expenses ($6.10/bbl vs $8.58/bbl) were partially offset by lower input cost pressure. The Nitrogen Fertilizer Segment strengthened significantly: net income more than doubled to $50 million on robust ammonia pricing ($687/ton vs $554/ton) and near-full utilization (103%), though UAN volumes dipped slightly amid seasonal shifts. Management highlighted solid operational execution—97% crude utilization and 103% ammonia plant utilization—and reaffirmed confidence in asset value appreciation, citing the $447 million locked-in swap value as a material forward-looking anchor. The $0.10 dividend declaration marks continuity in capital return policy, with explicit commentary indicating intent—but no commitment—to raise it in the future. The debt refinancing completed in February 2026 extended maturities and reduced near-term refinancing risk, albeit at higher coupon rates and with a $32 million loss on extinguishment. No forward guidance was provided beyond the realization timeline for the crack spread swaps and general optimism about fertilizer demand and refining fundamentals.