CITGO Reports Fourth Quarter and Full-Year 2023 Results

• Fourth quarter net income of $154 million, EBITDA¹ of $396 million and Adjusted EBITDA¹ of $411 million
• Fourth quarter total throughput of 821,000 barrels-per-day (bpd) and crude utilization of 89%
• Successfully completed contribution of operating assets from CITGO Holding Inc.
• Full-year net income of $2.0 billion, EBITDA of $3.3 billion and Adjusted EBITDA of $3.2 billion
• Record setting annual earnings for the Lubricants business unit
• Year-end liquidity of $4.0 billion, including full availability under CITGO's $500 million accounts receivable securitization facility
• Best process safety index since 2010 and occupational safety index below the 2022 industry average
• Total nameplate capacity of the CITGO refining system increased 38,000 bpd to 807,000 bpd in 2023
• Annual crude processing of 754,000 bpd, total annual throughput of 810,000 bpd and full-year crude utilization of 93%

HOUSTON, March 7, 2024 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO" or "CITGO Petroleum") today reported its 2023 fourth quarter and full-year financial and operational results, with fourth quarter net income of $154 million, EBITDA of $396 million and Adjusted EBITDA of $411 million driven by less favorable refinery gross margins, compared to net income of $567 million, EBITDA of $895 million and Adjusted EBITDA of $833 million for the third quarter of 2023.

For full-year 2023, a continued strong market environment combined with solid operational and commercial results contributed to 2023 net income of $2.0 billion, EBITDA of $3.3 billion and Adjusted EBITDA of $3.2 billion, compared with 2022 net income of $2.8 billion, EBITDA of $4.4 billion and Adjusted EBITDA of $4.4 billion.

"Strong demand, favorable market conditions and solid operational and commercial performance contributed to our second best annual financial performance in 2023," said CITGO President and CEO Carlos Jordá. "These strong financial results enabled us to fund a portion of the repayment of debt at the CITGO Holding level with excess cash, build even more liquidity and strategically invest in our assets, all while upholding our commitment to safe, reliable and responsible operations."  

Operational Highlights

• Operational Excellence – Completed the fourth quarter with a continued focus on maintaining strong safety and operational standards among employees and contractors. Other highlights include:
  • The Company achieved the best process safety performance since 2010, with the Lake Charles Refinery achieving its best process safety performance on record. Terminals and Pipelines (TPL) achieved more than one year without an OSHA Recordable incident and received the 2023 Safety Excellence Award from ILTA (International Liquid Terminal Association). Additionally, both the Atlanta, Ga. and Cicero, Ill. lubricants facilities each achieved more than five years without a recordable incident.
  • The Lemont Refinery, Lubricants and TPL had no environmental incidents during the year.
  • Total throughput for the fourth quarter was 821,000 bpd, of which crude runs were 719,000 bpd with a crude utilization rate of 89%, which was lower than the previous quarter due to planned outages at both the Lake Charles and Corpus Christi Refineries. For full-year 2023, total refinery throughput was 810,000 bpd, of which crude runs were 754,000 bpd, resulting in an overall crude utilization rate of 93%.
  • Refinery reliability remained strong with 4.94 equivalent down time days across the CITGO refining system. Despite major turnaround activities, the Lake Charles Refinery set an annual crude processing record of 438,000 bpd and achieved a crude capacity utilization rate of 95% for the year. The Lemont refinery achieved a crude capacity utilization rate of 99% for the year and processed a record-setting 175,000 bpd of crude with record total throughput of 193,000 bpd. The Corpus Christi Refinery achieved a crude capacity utilization rate of 84% and earned its third ENERGY STAR® certification in the last four years.
• Commercial Excellence – CITGO's Supply and Marketing business units set new post-pandemic earnings records and Lubricants reached its highest earnings levels in at least 10 years. The company successfully delivered refined products into several new markets, including gasoline to Colombia, jet fuel to Canada, and Naphtha to Europe, with total export volume for the year of 147,000 bpd. Favorable gasoline margins led to total domestic sales volume of 417,000 bpd for the year and several terminal throughput volume records.

Financial Highlights

• For full-year 2023, CITGO invested $394 million in annual turnaround and catalyst expenditures and an additional $329 million in direct capital expenditures. Projected 2024 turnaround, catalyst and capital expenditures total approximately $1.0 billion.
• Issued $1.1 billion of CITGO Petroleum Senior Secured Notes due 2029 in September 2023.
• Successfully completed the contribution of operating assets from CITGO Holding to CITGO Petroleum during the fourth quarter.
• Paid dividends to CITGO Holding of approximately $1.3 billion in 2023, which contributed to the funding of the redemption in full of approximately $1.4 billion aggregate principal amount of CITGO Holding's senior secured notes due 2024.
• Built year-end liquidity of $4.0 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, 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 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 approximately 150 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 over 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 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 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 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 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 [5] of this press release, as well as the reconciliation of Refinery EBITDA Estimates to CITGO's consolidated EBITDA set forth on page [6] of this press release.

SOURCE CITGO Petroleum Corporation

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