CITGO Petroleum Corporation: CITGO Reports Third Quarter 2024 Results

• Net income of $66 million, EBITDA¹ of $281 million and Adjusted EBITDA1 of $290 million
• Total liquidity at quarter-end of $3.6 billion, including full availability under CITGO's $500 million accounts receivable securitization facility
• Turnaround and maintenance activities successfully executed
• Total throughput of 811,000 barrels-per-day (bpd) and overall average crude utilization rate of 96%

HOUSTON, Nov. 14, 2024 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO" or "CITGO Petroleum") today reported its 2024 third quarter financial and operational results. High throughput volume contributed to a third quarter net income of $66 million, EBITDA of $281 million, and Adjusted EBITDA of $290 million compared with a net loss of $25 million, EBITDA of $162 million and Adjusted EBITDA of $149 million for the second quarter of 2024.

"After successfully completing our planned turnaround activities this year, we were able to capture available margins in a challenging pricing environment with strong reliability and higher throughput," said CITGO President and CEO Carlos Jordá. "We achieved an overall average crude utilization rate of 96% and set several production records in the third quarter, while safely adjusting operations in response to an active hurricane season."

Operational Highlights

Operational Excellence - Strong refinery operations in the third quarter followed the successful execution of planned turnarounds and maintenance in the second quarter. Process Safety performance through the third quarter is on track for a record setting year, and Occupational Safety performance remains better than the latest industry average. Other third quarter highlights include:

• Total throughput for the third quarter increased to 811,000 bpd, of which crude runs were 774,000 bpd with an overall average crude utilization rate of 96%. In comparison, total refinery throughput for the second quarter of 2024 was 720,000 bpd due to turnaround and maintenance activities, of which crude runs were 678,000 bpd with an overall average crude utilization rate of 84%.
• The Lake Charles Refinery reached an average crude utilization rate of 98%, achieving monthly crude processing records that contributed to the refinery's third best quarter for crude processing, while the refinery set a new distillate production record and continued progressing on the marine export expansion project.
• The Lemont Refinery reached an average crude utilization rate of 98% and completed the third quarter with no OSHA Recordable events and no process safety events, while setting jet fuel production records.
• Strong occupational safety and environmental performance continued for the Lubricants and Terminals and Pipeline (TPL) business units with no OSHA Recordable events, no Process Safety events and no environmental incidents during the quarter.
• Municipal fire departments and community-based mutual aid resources joined CITGO first response staff for the CITGO Corporate Foam and Tank Fire School in Corpus Christi, Texas, participating in PFAS-free foam testing and receiving training on specialized fire tactics.

Commercial Excellence - Supply, Marketing and TPL delivered solid results for the third quarter. Total third quarter Marketing sales volume was 428,000 bpd, up slightly from the second quarter, with 73 new branded sites and a new monthly record for unbranded sales. The new East Chicago loading rack continues to ramp up, leading to record throughput, with the Sour Lake pipeline setting new monthly throughput records and the Trading organization continuing to expand into new international markets, including delivering products to Japan and China for the first time.

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¹ EBITDA and Adjusted EBITDA are non-GAAP financial measures. For additional information, please see the information under "General Information - Non-GAAP Financial Measures" on page 3 of this press release and the reconciliation on page 4 of this press release.

Financial Highlights

• Turnaround and catalyst expenditures for the quarter totaled $115 million, with an additional $92 million in direct capital expenditures incurred during the quarter. Projected turnaround, catalyst and capital expenditures for full-year 2024 total approximately $970 million.
• Total liquidity at quarter-end was $3.6 billion, including full availability under CITGO's $500 million accounts receivable securitization facility.

About CITGO
CITGO owns and operates three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 807,000 bpd, located in Lake Charles, La., Corpus Christi, Texas and Lemont, Ill. Our refining operations are supported by an extensive distribution network, which provides reliable access to our refined product end-markets. We own 34 active refined product terminals with a total storage capacity of 18.1 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 22 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 approximately150 active third-party and related-party terminals through exchange, terminalling and similar arrangements. Our retail network consists of more than 4,000 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 more than 100 years.

ADDITIONAL INFORMATION
General:

CITGO publishes financial and other information on its website, including reports of quarterly and annual results of operations. 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 and Adjusted EBITDA, as discussed below.

Forward-Looking Statements:
This press release contains "forward-looking statements" regarding financial and operational matters 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 and 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 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 reports to CITGO noteholders, including the information set forth under the caption "Risk Factors." CITGO disclaims any duty to update any such forward-looking statements.

Operational Metrics and Non-GAAP Financial Measures:
This press release also contains operational metrics and non-GAAP financial information, including EBITDA, Adjusted EBITDA and Refinery EBITDA Estimates, that have not been audited and are based on management's estimates, which may be difficult to verify. These non-GAAP financial measures are presented in addition to and should not be viewed as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, CITGO's non-GAAP financial measures 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 [4] of this press release, as well as the reconciliation of Refinery EBITDA Estimates to CITGO's consolidated EBITDA set forth on page [5] of this press release.

Reconciliation of Net Income to EBITDA (unaudited, in millions of U.S. dollars)
	Three Months Ended						Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2024			September 30, 2023
	($ in millions)
Net income (loss)	$	66		$	(25)		$	450		$	1,885
Excluding the impacts of:
Interest expenses, net		14			10			35			(1)
Income tax expense		22			1			138			542
Depreciation and amortization		180			176			529			473
EBITDA (3)	$	281		$	162		$	1,152		$	2,899
NISCO Dissolution Settlement		9			-			9			-
Legal Settlement		-			-			(32)			(54)
Vicksburg terminal sale		-			-			-			(8)
Hurricane Laura Ins Recoveries		-			(13)			(13)			-
Adjusted EBITDA	$	290		$	149		$	1,116		$	2,837

Reconciliation of Refinery EBITDA Estimates to Total Consolidated EBITDA (unaudited, in millions of U.S. dollars)
	Three Months Ended						Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2024			September 30, 2023
	($MM)
Lake Charles		71			138			592			1,582
Corpus Christi		49			(67)			110			489
Lemont		129			48			404			756
Total Refinery EBITDA Estimates (1)	$	249		$	119		$	1,106		$	2,827
Marketing		32			34			102			103
Lubricants		9			6			19			32
Terminals & Pipelines		37			40			126			95
Product Supply (2)		29			11			(20)			16
Total EBITDA Estimate for Non-Refining Businesses	$	107		$	91		$	227		$	246
Corporate EBITDA Estimate (3)		(75)			(48)			(181)			(174)
Total CITGO Consolidated EBITDA	$	281		$	162		$	1,152		$	2,899

(1) Refinery EBITDA Estimates and EBITDA Estimates for the Non-Refining Businesses are non-GAAP financial measures. The table above includes further detail on a by refinery basis, as well as for CITGO's Non-Refining Businesses. CITGO's Consolidated EBITDA also reflects hedging activities associated with procuring crude and feedstocks for the refineries and other derivatives activity.

(2) Includes activities related to selling refinery production both externally and to CITGO's Marketing function.

(3) Includes corporate staff and overhead costs, and other corporate-related items.

SOURCE CITGO Petroleum Corporation