CVR ENERGY INCCVI

CVR ENERGY INC Leases Disclosure

10-KFiled Feb 18, 20262 min read
(6) Leases
Lease Overview
We lease certain pipelines, storage tanks, railcars, office space, land, and equipment across our refining, fertilizer, and corporate operations. Most of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased asset. Certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.
Balance Sheet Summary as of December 31, 2025 and 2024
The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
(in millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU assets, net
Equipment, real estate and other$28 $37 $33 $36 
Pipeline and storage26 22 25 14 
Railcars15 — 17 — 
Lease liability
Equipment, real estate and other$25 $35 $30 $33 
Pipelines and storage25 31 25 25 
Railcars14 — 16 — 
Lease Expense Summary for the Year Ended December 31, 2025, 2024 and 2023
For the years ended December 31, 2025, 2024, and 2023, we recognized lease expense comprised of the following components:
Year Ended December 31,
(in millions)202520242023
Operating lease expense$21 $19 $18 
Finance lease expense:
Amortization of ROU asset7 5 6 
Interest expense on lease liability6 4 4 
Short-term lease expense13 12 11 
Lease Terms and Discount Rates
The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and lease liabilities at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term5.1 years7.0 years5.4 years8.3 years
Weighted-average discount rate8.1 %10.0 %7.9 %10.2 %
Maturities of Lease Liabilities
The following summarizes the remaining minimum lease payments through maturity of the Company’s lease liabilities at December 31, 2025:
(in millions)Operating LeasesFinance Leases
Year Ended December 31,
2026$20 $16 
202717 16 
202812 13 
20299 10 
20308 16 
Thereafter13 26 
Total lease payments79 97 
Less: Imputed interest
(15)(31)
Total lease liability$64 $66 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 23, 2021
2019Feb 20, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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