CITGO Delivers Strong Refinery Performance in First Quarter 2026

First Quarter 2026 Highlights

HOUSTON, May 14, 2026 /PRNewswire/ -- CITGO Petroleum Corporation ("CITGO") today reported first-quarter 2026 financial and operational results, highlighted by favorable late-quarter refining margins and reliable operations. Strong product differentials in March contributed to net income of $157 million, EBITDA of $368 million and Adjusted EBITDA of $361 million.

"Reliability remained strong during the quarter and our margin capture rate improved relative to the previous quarter," said Carlos Jordá, President and CEO of CITGO Petroleum Corporation. "Looking ahead, we expect favorable market conditions to continue throughout 2026, and we believe our refineries are well positioned to capture market opportunities while we continue executing our operational and commercial excellence initiatives and our capital program throughout the year."

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

Operational and Commercial Highlights

Operational Excellence: Health, safety and environmental (HSE) performance remains a priority and supports operational excellence across the organization, as highlighted below. First quarter operational highlights also are summarized below.

Commercial Excellence: Commodity prices rose sharply in the first quarter, triggering mark-to-market losses on derivatives used to hedge certain physical positions. Under last-in, first-out (LIFO) accounting, the offsetting increase in the inventory's market value is not reflected in book value. Extreme price volatility also contributed to a 3% decline in marketing sales volume to 417,000 bpd from 430,000 bpd in the prior quarter. Branding activity remained strong, and Club CITGO® loyalty-related gallons rose 27% year over year.

The Terminals and Pipeline business unit posted several first-quarter records. The Sour Lake Pipeline set a daily pumping record and a monthly record in March. The East Chicago terminal set a daily loading rack record, and the Corpus Christi terminal set a monthly throughput record. Construction is also underway on the gasoline truck rack in Luling, Texas.

CITGO expanded its trading footprint by increasing blending capacity on the U.S. Gulf Coast, adding term charters and growing direct business with U.S. airline carriers. In accordance with the appropriate OFAC license, the company also purchased and refined its first Venezuelan crude oil since 2019.

Full-Year 2026 Forecasts

Based on current market conditions and a strong outlook for the remainder of the year, CITGO is currently projecting full-year 2026 EBITDA of between $3.2 and $3.6 billion and a year-end 2026 cash balance of between $3.5 and $3.9 billion, using forward curves and assuming no material full-year changes in working capital.

About CITGO

CITGO owns and operates three large-scale, highly complex petroleum refineries with a total rated crude oil refining capacity of approximately 829,000 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 35 active refined product terminals with a total storage capacity of 18.3 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 eight 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 140 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. CITGO and its 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, including forecasts of full-year 2026 results of operations and anticipated year-end 2026 cash position. 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 other information 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" in CITGO's annual report for the year ended December 31, 2025. 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. Please see the reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure set forth in the tables that follow.

Reconciliation of Net Income to EBITDA

(unaudited, in millions of U.S. dollars)

Three Months Ended

March 31,

2026

December 31,

2025

March 31,

2026

March 31,

2025

($ in millions)

Net income (Loss)

157

268

157

(82)

Excluding the impacts of:

Interest expense/(income), net

(1)

Income tax expense (benefit)

(25)

Depreciation and amortization

166

165

166

178

EBITDA (1)

368

507

368

Legal Reserves & Settlements

Insurance Recoveries

(7)

(113)

(7)

LIFO Impact-permanent inventory dip

Adjusted EBITDA (1)

361

442

361

(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. The reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is presented in the table above.

Reconciliation of Refinery EBITDA Estimates to Consolidated EBITDA

(unaudited, in millions of U.S. dollars)

Three Months Ended

March 31,

2026

December 31,

2025

March 31,

2026

March 31,

2025

($MM)

Lake Charles

591

355

591

126

Corpus Christi

(57)

(23)

Lemont

(47)

105

(47)

Total Refinery EBITDA Estimate (1)

638

403

638

129

Marketing

(13)

Lubricants

Terminals & Pipelines

Product Supply (2)

(218)

(62)

Total EBITDA Estimate for Non-Refining

Businesses

(169)

Corporate EBITDA Estimate (3)

(101)

(75)

Total CITGO Consolidated EBITDA

368

507

368

(1) The Refinery EBITDA Estimates and EBITDA Estimates for CITGO's Non-Refining Business Units presented in the table above are non-GAAP financial measures. The table above includes further detail on a by refinery basis, as well as for each of CITGO's Non-Refining Business Units.

(2) Reflects activities related to sales of refined products, both externally and to CITGO's Marketing function. The amount shown for Product Supply for the first quarter of 2026 includes $(113) million of losses associated with derivative instruments used for hedging certain physical positions. An additional aggregate of $(115) million of derivative losses associated with such hedging activities relating to refinery operations is reflected in the Total Refinery EBITDA Estimate for the first quarter of 2026 as shown in the table above.

(3) Includes corporate staff and overhead costs, and other revenues and expenses that are not allocated to Refineries or Non-Refining Business Units.

SOURCE CITGO Petroleum Corporation