Businessweek

CVR Energy, Inc. operates as an independent petroleum refiner and marketer of transportation fuels. The company owns CVR Refining, LP (the ‘Refining Partnership’) and CVR Partners, LP (the ‘Nitrogen Fertilizer Partnership’). The Nitrogen Fertilizer Partnership produces and markets nitrogen fertilizers in the form of ammonia, and urea and ammonium nitrate (UAN). The company owns the general partner and a majority of the common units representing limited partner interests in each of the Refining Partnership and the Nitrogen Fertilizer Partnership. Segments The company operates through two segments, Petroleum and Nitrogen Fertilizer. Petroleum This segment consists of a 115,000 barrels per calendar day (bpd) complex full coking medium-sour crude oil refinery in Coffeyville, Kansas. The Coffeyville refinery is situated on approximately 440 acres in southeast Kansas, approximately 100 miles from Cushing, Oklahoma, a major crude oil trading and storage hub. The Wynnewood refinery is situated on approximately 400 acres located approximately 65 miles south of Oklahoma City, Oklahoma and approximately 130 miles from Cushing, Oklahoma. For the year ended December 31, 2012, the Coffeyville refinery's product yield included gasoline (primarily regular unleaded), diesel fuel (primarily ultra-low sulfur diesel), and pet coke and other refined products, such as natural gas liquids (propane and butane), slurry, sulfur, and gas oil. The Wynnewood refinery's product yield included gasoline, diesel fuel (primarily ultra-low sulfur diesel), asphalt, jet fuel, and other products. This segment also includes the following auxiliary operating assets: Crude Oil Gathering System This segment owns and operates a crude oil gathering system serving Kansas, Nebraska, Oklahoma, Missouri, and Texas. The system has field offices in Bartlesville, Oklahoma, Plainville, Kansas, and Winfield, Kansas. The system includes approximately 350 miles of feeder and trunk pipelines, approximately 140 crude oil transports, and associated storage facilities for gathering crude oils purchased from independent crude oil producers in the company’s gathering area. This segment also leases a section of a pipeline from Magellan Midstream Partners, L.P. (Magellan), which is incorporated into its crude oil gathering system. The crude oil gathering system has a gathering capacity of approximately 50,000 bpd. During 2012, this segment gathered an average of approximately 46,000 bpd. Pipelines and Storage Tanks This segment owns a proprietary pipeline system capable of transporting approximately 145,000 bpd of crude oil from its Broome Station tank farm located near Caney, Kansas to its Coffeyville refinery. Crude oils sourced outside of the proprietary gathering system are delivered by common carrier pipelines into various terminals in Cushing, Oklahoma, where they are blended and then delivered to the Broome Station tank farm through a pipeline owned by Plains Pipeline L.P. This segment also controls associated crude oil storage tanks with a capacity of approximately 1.2 million barrels located outside the Coffeyville refinery, 0.5 million barrels of crude oil storage capacity at Wynnewood, Oklahoma, 1.0 million barrels of crude oil storage capacity in Cushing, Oklahoma and leases an additional 3.3 million barrels of crude oil storage capacity located at Cushing. In addition to crude oil storage, this segment owns approximately 4.5 million barrels of combined refinery related storage capacity. The company has a rack marketing division supplying product through tanker trucks directly to customers located in close geographic proximity to Coffeyville, Kansas and Wynnewood, Oklahoma and to customers at throughput terminals on Magellan and NuStar Energy, LP's refined products distribution systems. Customers: Customers for the refined petroleum products primarily include retailers, railroads, and farm cooperatives and other refiners/marketers. Suppliers: The company’s supplier includes Vitol Inc. Seasonality: This segment experiences seasonal effects as demand for gasoline products is higher during the summer months than during the winter mon