- Lake Charles had a fourth quarter crude utilization rate of 108%, marking the third consecutive quarter where Lake Charles set a new crude throughput record, with 459,000 bpd for the fourth quarter.
- Lemont had record crude throughput of 181,000 bpd for the fourth quarter, utilizing 102% of the refinery’s rated crude capacity.
- Corpus Christi had a fourth quarter crude utilization rate of 94% and processed a record amount of Canadian crude.
- During the fourth quarter, CITGO invested $41 million in turnaround and catalysts and had an additional $61 million of capital expenditures. For full-year 2022, turnarounds, catalyst and capital expenditures totaled approximately $605 million.
- CITGO repaid in full all of the $1.1 billion outstanding under its Term Loan B while maintaining strong liquidity.
- Year-end total liquidity was $2.6 billion, comprised of approximately $2.1 billion of unrestricted cash and the full $500 million of availability under CITGO’s accounts receivable securitization facility.
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. For additional information, please see the reconciliation on page 5 of this press release and the information under “General Information – Non-GAAP Financial Measures” on page 4 of this press release.
2 Process Safety Index = (0.7* T-1 PSE rate) + (0.3* T-2 PSE rate)
3 Environmental Index = < 0.3 (Environmental Incidents) + 0.2 (Title V Deviations) + 0.1 (Wastewater Effluent Index) + 0.2 (Air Emission s) + 0.1 (Uncontrolled Benzene) + 0.1 (CEMS Downtime) >/ 10
About CITGO
We own and operate three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 769 MBPD, located in Lake Charles, Louisiana, Corpus Christi, Texas and Lemont, Illinois. Our refining operations are supported by an extensive distribution network, which provides reliable access to our refined product end-markets. We own 30 active refined product terminals with a total storage capacity of 7.8 million barrels and have equity ownership of an additional 3.5 million barrels of refined product storage capacity through our joint ownership of an additional 8 terminals, spread across 21 states. In addition, we own or have an equity interest in four additional terminals, consisting of approximately 1 million barrels of refined storage capacity, which are currently inactive or only utilized to store feedstocks used in refining operations. We also have access to more than 150 active third-party and related-party terminals through exchange, terminalling and similar arrangements. Our retail network consists of approximately 4,200 independently owned and operated CITGO-branded retail outlets located east of the Rocky Mountains. We and our predecessors have had a recognized brand presence in the U.S. for over 100 years.
ADDITIONAL INFORMATION
General:
CITGO publishes financial and other information on its website, including reports of quarterly and annual results of operations and financial condition. While CITGO's historical financial information is presented in accordance with U.S. generally accepted accounting principles ("GAAP"), CITGO is not an SEC reporting company and does not report all information required of SEC reporting companies. In addition, CITGO publishes certain non-GAAP financial information, including EBITDA, as discussed below.
Forward-Looking Statements:
This press release contains "forward-looking statements" regarding financial and operating items relating to the CITGO business. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties many of which are beyond CITGO's control, that could result in expectations not being realized or could otherwise materially and adversely affect CITGO's business, financial condition, results of operations and cash flows. This press release may also contain estimates and projections regarding market and industry data that were obtained from internal company estimates, as well as third-party sources believed to be generally reliable. However, market data is subject to change and cannot always be verified with complete certainty due to limits on the availability and reliability of raw data and other limitations and uncertainties inherent in any statistical survey, interpretation or presentation of market data and management's estimates and projections. The forward-looking statements contained in this press release are made only as of the date of this press release. For additional information, please see CITGO’s most recent annual report and other financial reports, including the information set forth under the caption “Risk Factors.” CITGO disclaims any duty to update any forward-looking statements.
Operational Metrics and Non-GAAP Financial Measures:
This press release also contains operational metrics and non-GAAP financial information, including EBITDA and Adjusted EBITDA, that have not been audited and are based on management's estimates, which may be difficult to verify. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from non-GAAP measures used by other companies in our industry. We believe these non-GAAP financial measures, when presented in conjunction with comparable GAAP measures, provide useful supplemental information regarding underlying trends in the Company’s operating performance by excluding items that may not be indicative of the Company’s core operating performance. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure set forth on page 5 of this press release, as well as the reconciliation of Refinery EBITDA Estimates to consolidated EBITDA set forth on page 6 of this press release.
Reconciliation of net income (loss) to Adjusted EBITDA
(unaudited, in millions of U.S. dollars)
| Three Months ended | Twelve Months ended | ||||
| December 31, | September 30, | December 31, | December 31, | ||
| 2022 | 2022 | 2022 | 2021 | ||
| Net income (loss) | 806 | 477 | 2,814 | (160) | |
| Excluding the impacts of: | |||||
| Interest expense, including finance lease | 59 | 60 | 233 | 240 | |
| Income tax expense (benefit) | 214 | 121 | 774 | (50) | |
| Depreciation and amortization | 149 | 146 | 590 | 593 | |
| EBITDA | 1,228 | 804 | 4,411 | 623 | |
| Plus | |||||
| NISCO impairment | 15 | - | 15 | - | |
| Loss on early extinguishment debt | 14 | - | 14 | 6 | |
| LIFO inventory permanent dip impact | (5) | - | (5) | (100) | |
| Hurricane Laura costs, net of insurance claims recoveries | - | - | - | 12 | |
| Winter Storm Uri costs, net of insurance | - | - | - | 10 | |
| Charitable contributions | - | - | 6 | ||
| Adjusted EBITDA | 1,252 | 804 | 4,435 | 557 | |
- NISCO impairment – The company submitted a notice to withdraw from the NISCO partnership and recorded a full impairment of $15 million, reflecting the balance of the Company’s investment in the partnership.
- Loss on early extinguishment of debt of $14 million related to the repayment in full of the approximately $1.1 billion aggregate principal amount outstanding under CITGO’s Term Loan B.
- LIFO inventory permanent dip (2022 and 2021): CITGO recorded a gain of $5 million in 2022 and a gain of $100 million in 2021 as a result of selling prior year inventory layers at prices above cost.
- CITGO did not incur any significant costs in 2022 associated with repairs of damage caused by Winter Storm Uri or Hurricane Laura. In 2021, CITGO had net expenses after insurance recoveries of $10 million and $12 million, respectively, related to those events.
- Charitable contributions, including CITGO corporate social responsibility activities and Simon Bolivar Foundation contributions were: $2 million in the third quarter of 2022, $6 million in the fourth quarter of 2022 and $11 million for full-year 2022, and $6 million for full-year 2021. Effective as of January 1, 2022, the company is no longer adjusting for charitable contributions in its calculation of Adjusted EBITDA.
Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA
(unaudited, in millions of U.S. dollars)
| Three Months ended | Twelve Months ended | |||||
| December 31, | September 30, | December 31, | December 31, | |||
| 2022 | 2022 | 2022 | 2021 | |||
| Refinery EBITDA: | ||||||
| Lake Charles | 557 | 541 | 2,446 | 293 | ||
| Corpus Christi | 234 | 166 | 963 | (17) | ||
| Lemont | 437 | 131 | 1,161 | 319 | ||
| Total Refinery EBITDA Estimates 1 | 1,228 | 838 | 4,570 | 595 | ||
| Product Supply 2 | (7) | (31) | (113) | (12) | ||
| Marketing | 48 | 40 | 144 | 140 | ||
| Lubricants | 4 | - | 26 | 30 | ||
| Corporate and other EBITDA estimates 3 | (45) | (43) | (216) | (130) | ||
| Total CITGO Consolidated EBITDA | 1,228 | 804 | 4,411 | 623 | ||
(1) The Refinery EBITDA Estimates presented in this press release are non-GAAP financial measures. The Refinery EBITDA Estimates are calculated as refinery hydrocarbon gross margin minus refinery operating expenses and non-operating and income/(expense) items, plus depreciation and amortization. With respect to these components of Refinery EBITDA, we define refinery hydrocarbon gross margin as the estimated value of a refinery's production less the cost of hydrocarbons and intermediate feedstocks used by that refinery. In addition, refinery operating expenses reflect estimates of the direct costs and expenses associated with operating the refineries, such as labor and related burden energy, maintenance and materials, and depreciation and amortization. Further, other miscellaneous costs and indirect expenses associated with operating the refineries include certain overhead expenses for crude supply and trading, industrial products and petrochemicals, as well as certain refinery-related equity in the investments of affiliates and insurance proceeds. The amounts allocated to our refineries for certain of these costs and expenses for purposes of our estimates of Refinery EBITDA do not necessarily reflect the full amounts of such costs.
(2) Product supply includes results of terminal operations.
(3) Includes CITGO Petroleum hedging activities, corporate staff and overhead costs, and other corporate-related items. Also includes EBITDA estimates for the Pipelines business unit.
