Strategic Performance and Market Dynamics

• Operational performance remained strong with 97% crude utilization and 103% ammonia utilization despite a challenging start to the year.

• Geopolitical disruptions in the Middle East, specifically the effective closure of the Strait of Hormuz, have tightened global energy and fertilizer supplies, creating a constructive outlook for the company's businesses.

• Mid-Continent refined product inventories have declined significantly since the beginning of the year, with gasoline down 17% and diesel down 20%, leading to improved basis and crack spreads.

• The company is leveraging its repurposed rail loading facility at Wynnewood to access higher-demand regions outside the Mid-Continent and Gulf Coast to improve margin capture.

• Fertilizer segment performance was bolstered by tight global nitrogen inventories and high domestic demand, with 95 million corn acres projected for the 2026 planting season.

• Management attributed the first quarter net loss primarily to $158 million in unrealized derivative losses from crack spread swaps intended to hedge future production through 2027.

Strategic Outlook and Guidance Assumptions

• Management expects to achieve a gross leverage target of $1 billion, excluding CVR Partners' debt, while simultaneously maintaining the newly reinstated $0.10 per share dividend.

• Second quarter 2026 petroleum throughput is estimated at 200,000 to 215,000 barrels per day, with fertilizer ammonia utilization projected between 95% and 100%.

• The company anticipates that current derivative losses will be offset by gains on physical production if crack spreads remain elevated through the remainder of the year.

• Strategic growth initiatives include monitoring M&A opportunities to add scale and geographic diversity once market volatility stabilizes.

• New product pipelines, including a line from Kansas to Denver and the Western Gateway Pipeline, are expected to provide additional outlets for Mid-Continent production, with the latter specifically connecting to the Gulf Coast.

Regulatory and Financial Risk Factors

• The EPA's establishment of the highest RVO in history has driven RIN prices up 75% since the start of the year, creating a significant headwind for refining margins.

• Net RINs expense reached $7.37 per barrel in the first quarter, which management noted negatively impacted the capture rate by approximately 34%.

• Management expressed frustration with the EPA for missing the deadline on the Wynnewood Refining Company's 2025 SRE petition, which would have improved the capture rate by 12% if granted.

• The company holds open crack swap positions for 9.9 million barrels of diesel and 2.4 million barrels of gasoline, representing 15% of expected 2026 production.