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The effects of Variable Valve Timing (VVT) on Homogeneous Charge Compression Ignition (HCCI) engine energy distribution and waste heat recovery are investigated using a fully flexible Electromagnetic Variable Valve Timing (EVVT) system. The experiment is carried out in a single cylinder, 657 cc, port fuel injection engine fueled with n-heptane. Exergy analysis is performed to understand the relative contribution of different loss mechanisms in HCCI engines and how VVT changes these contributions. It is found that HCCI engine brake thermal efficiency, the Combined Heat and Power (CHP) power to heat ratio, the first and the second law efficiencies are improved with proper valve timing. Further analysis is performed by applying the first and second law of thermodynamics to compare HCCI energy and exergy distribution to Spark Ignition (SI) combustion using Primary Reference Fuel (PRF). HCCI demonstrates higher fuel efficiency and power to heat and energy loss ratios compared to SI.