Who We Are
Headquartered in Sugar Land, Texas, CVR Refining is an independent downstream energy limited partnership formed by CVR Energy, Inc., to own, operate and grow our refining and related logistics businesses.
Our petroleum business includes a complex full coking, medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) operated by Coffeyville Resources Refining & Marketing in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd operated by Wynnewood Refining Company in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity. Please click here to read more about our petroleum businesses.
CVR Refining, LP is traded on the New York Stock Exchange under the ticker symbol "CVRR." CVR Energy subsidiaries serve as the general partner of CVR Refining and own the majority of the common units representing limited partner interests of CVR Refining.
Strategically located refineries with advantageous access to crude oil supply. The Midcontinent locations of CVR Refining’s refineries and logistics businesses gives us access to lower cost Midcontinent domestic sweet and sour and various light and heavy grade Canadian crude oils, allowing us to improve our realized margins. Historically, we have purchased crude oil at a discount to WTI as a result of our location. More recently, the increase of the discount at which a barrel of WTI traded relative to Brent has allowed refineries, such as ours, that are capable of sourcing and utilizing crude oil that is priced by reference to WTI, to realize relatively lower crude oil costs and benefit from the refined product prices resulting from higher Brent prices.
Competitive Cost Advantages
Our supporting petroleum businesses provide competitive cost advantages. CVR Refining’s network of pipelines, crude oil transport business and storage facilities allow us to source domestically-produced sweet and sour crude oils to our refineries in a price-advantaged manner. Since 2005, our management team has grown our local gathering system from 7,000 barrels per day to today’s approximate 65,000 barrels per day, and it now supplies approximately 25 percent of our refineries’ crude.
Attractive Supply and Demand Dynamics
We enjoy attractive refined products' supply and demand dynamics. CVR Refining’s refineries are located in the cost-advantaged area of the PADD II region known as Group 3. Our combined production capacity represents approximately 22 percent of our region’s refining capacity. Since the mid-1990s, demand for refined products in the PADD II region has exceeded regional production, resulting in a need for imports from other regions. We benefit from the fact that the market prices in our region typically include a premium equivalent to the logistics cost for other suppliers to ship products into our region.
Substantial Refinery Operating Flexibility
We have substantial operating flexibility at our refineries. Since June 2005, the variety of crude grades we are able to process at our Coffeyville refinery have been significantly expanded. We also have increased the variety of crude grades that the Wynnewood refinery can process since we purchased the refinery in December 2011. Plans are in place to upgrade a hydrocracker unit at the Wynnewood refinery, which will give us greater flexibility.
Our proximity to, and substantial storage capacity at, the crude oil trading hub in Cushing, Oklahoma, minimizes the likelihood of an interruption to our supply and facilitates optimal crude oil purchasing and blending. CVR Refining also maintains 35,000 barrel per day capacity on the Spearhead and Keystone pipelines from Canada to Cushing and operates an approximately 65,000 barrel per day crude gathering system serving Kansas, Nebraska, Oklahoma, Missouri, Colorado and Texas. Our crude gathering system allows us to acquire quality crudes at a discount to WTI. This combination of access to price-advantaged domestic and Canadian crude oils allows us to capitalize on changing market conditions and optimize our crude oil supply.
Strong Refinery Operating Track Record
We have a strong refinery operating track record. CVR Refining invests millions in its facilities to ensure efficient, safe and reliable operations. Since 2005, we have invested more than $700 million to modernize our Coffeyville refinery and to meet more stringent federal and state environmental, health and safety requirements. As a result of these investments, we have achieved significant increases in our Coffeyville refinery crude throughput rate from less than 90,000 barrels per stream day prior to June 2005 up to approximately 125,000 barrels per stream day in the fourth quarter of 2013.
We also invested more than $100 million in the Wynnewood refinery’s 2012 fall turnaround—our first turnaround since purchasing the refinery in December 2011—which will help to ensure operational reliability and safety.
Synergistic Relationship with CVR Partners
Our relationship with CVR Partners provides CVR Refining with a number of operational advantages. We have the ability to purchase hydrogen from CVR Partners’ nitrogen fertilizer facility in Coffeyville, which provides an important hydrogen supply redundancy to our Coffeyville refinery. We also share a number of utilities with CVR Partners, such as steam and water utilities, which reduces the direct operating expenses of running our Coffeyville refinery. In addition, pursuant to a long-term agreement, CVR Partners purchases 100 percent of the petroleum coke that we produce at our Coffeyville refinery, thereby assuring a guaranteed source of demand for this by-product of our refining operations.