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What factors drove the changes in CVR Energy's revenue and profit?

- **Record Q3 Performance**: $401M net income driven by $488M SRE benefit, with 97% crude utilization and $25.97/bbl crack spread.
- **RFS Resolution**: 80% RFS obligation reduction post EPA SRE grants, though 2025 SREs remain pending.
- **RD Shutdown**: Reverting Wynnewood RD unit to hydrocarbon processing due to unprofitability, with $93M RFS obligation.
- **Balance Sheet Focus**: $121M Q3 free cash flow, $235M term loan balance, and targeted leverage reduction.
- **Dividend Outlook**: Board evaluating dividend restart based on debt levels and crack spread stability.

**【CEO Opening Remarks】**
- Reported Q3 2025 consolidated net income of $401 million and EPS of $3.72, driven by $488 million benefit from small refinery exemptions (SREs) for Wynnewood Refinery.
- Petroleum segment throughput reached 216,000 bpd, with 97% crude utilization and light product yield. Group III crack spread averaged $25.97/bbl vs. $19.40/bbl in 2024.
- RFS obligation reduced by 80% post EPA SRE grants for 2019-2024, though 2025 SREs remain pending.
- Renewable diesel unit at Wynnewood processed 19M gallons Q3, but faced $0.01/gallon loss due to blenders tax credit loss and soybean oil price increases.
- Fertilizer segment EBITDA of $71M, supported by higher UAN and ammonia prices amid tight global supplies.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $180M (Petroleum: $120M, Fertilizer: $71M, Renewables: -$7M). Petroleum margin of $12.87/bbl (50% capture rate on Group III crack).
- RINs expense of $88M (4.45/bbl) reduced capture rate by 17%. Balance sheet RFS obligation of $93M as of Q3.
- 2025 capital spending guidance of $180-200M, with $190M for turnarounds. Q4 2025 free cash flow of $121M, with $83M from Fertilizer segment.
- Term loan repayment of $20M, leaving $235M balance. Liquidity of $830M as of Q3.

**【CEO Outlook & Strategy】**
- Reverting Wynnewood RD unit to hydrocarbon processing in Q4 due to unprofitable renewable diesel business (loss of BTC, high soybean oil prices).
- Accelerated depreciation of $31M in Q3 and $62M in Q4 for RD unit mothballing. Exploring alternative uses for RD infrastructure.
- Cautiously optimistic on refining sector with 400-500k bpd global refinery closures and limited new capacity. Jet fuel production ramp-up at Coffeyville.
- Fertilizer segment ammonia utilization rate of 80-85% in Q4 due to Coffeyville turnaround. Tight global nitrogen supplies to support pricing into 2026.
- Prioritizing debt reduction to achieve targeted leverage ratio, with dividend discussions contingent on debt levels and crack stability.

**【Q&A Highlights】**
- Pipeline projects to PADD 4/5 could alleviate Mid-Con product surplus, though commercial terms and CARB compliance remain hurdles.
- RIN obligation of $100M for 2024-2025 if 50% SRE granted; potential RINs purchased could be reused for future compliance.
- No immediate plans for capital spending on RD reactivation; focus on hydrocarbon processing and infrastructure repurposing.
- Dividend decision tied to debt reduction progress and crack spread sustainability, with faster debt paydown possible if cracks remain elevated.

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