The fundamental analysis of the market situation in the mineral fertilizer sector suggests that demand for these products will increase in 2026. This fact leads me to look for shares of companies thatMy professional path in the world of finance and investments began in 2011. I am an active trader working intraday and defining investment ideas in the long term. Despite having two higher educations in economics, most of the knowledge was obtained through self-study of the investment sphere and active practice ...

Berkshire Hathaway is buying Occidental Petroleum’s chemical division for $9.7 billion in what may be the last big acquisition involving the consummate dealmaker, Warren Buffett.Buffett wasn’t mentioned anywhere in materials released by Berkshire Hathaway discussing the deal Thursday, potentially signaling a passing of the torch to Vice Chair Greg Abel, to whom Buffett will hand the CEO title in January.Buffett will remain chairman at Berkshire and will still be involved in deciding how to spend the conglom ...

Core Insights - Carl Icahn's Icahn Enterprises portfolio is valued at $7.89 billion, with the top five holdings comprising 89.74% of total assets, indicating a highly concentrated investment strategy [1][7] Group 1: Portfolio Overview - The largest position is Icahn Enterprises (IEP), valued at $3.98 billion, representing 50.47% of the total portfolio, highlighting Icahn's alignment with shareholders [2] - CVR Energy Inc. (CVI) is the second-largest position, valued at $1.89 billion, accounting for 23.97% of the portfolio, reflecting confidence in its cash generation potential [3] - Southwest Gas Holdings (SWX) holds a value of $560 million, making up 7.11% of the portfolio, with Icahn advocating for strategic changes [4] - CVR Partners LP (UAN) is valued at $370 million, representing 4.69% of the portfolio, linked to agricultural commodity prices [5] - International Flavors & Fragrances (IFF) rounds out the top five with a value of $276 million, accounting for 3.50% of the portfolio, focusing on operational improvements [6] Group 2: Investment Strategy - The portfolio's concentration underscores Icahn's activist investment style, characterized by significant positions in companies where he believes shareholder value can be unlocked through strategic changes [7]

Company Overview - CVR Partners (NYSE: UAN) is a master limited partnership (MLP) focused on the production of nitrogen fertilizers, primarily urea ammonium nitrate (UAN), in the Midwest United States [1]. Investment Insights - The current fertilizer prices have prompted significant additions to positions in UAN, indicating a bullish outlook on the company's stock [2]. - The analysis emphasizes that commodity processing companies, such as CVR Partners, are easier to analyze due to their reliance on input and output prices, allowing for more accurate stock predictions based on real-time commodity price tracking [1].

Core Insights - Cvr Partners reported significant increases in profitability and revenue for Q2 2025, with net sales reaching $168.6 million, a 26.9% increase from Q2 2024, and earnings per common unit rising to $3.67 [1][2] - The company declared a distribution of $3.89 per unit, more than doubling last year's payout [1][11] Financial Performance - Net sales (GAAP) for Q2 2025 were $168.6 million, up from $132.9 million in Q2 2024, reflecting a 26.8% year-over-year increase [2] - Earnings per common unit (GAAP) increased by 48.0% to $3.67 from $2.48 in Q2 2024 [2] - Available cash for distribution rose 104.5% to $41.1 million compared to $20.1 million in Q2 2024 [2][8] Production and Utilization - Ammonia utilization rates fell to 91% from 102% in Q2 2024, with production volumes declining due to scheduled downtime and upgrades [1][6] - Despite lower production volumes, total sales volumes for ammonia increased by 32.6% compared to Q2 2024, driven by inventory management and market demand [5] Cost and Pricing Dynamics - Direct operating expenses rose 29% to $60.5 million, with natural gas costs increasing by 70.5% compared to Q2 2024 [7] - Ammonia prices increased by 14% year-over-year, while UAN prices rose by 18%, supported by tight supply-demand balances in U.S. agriculture [5] Operational Strategy - The company operates two major production facilities, utilizing petroleum coke and natural gas for fertilizer production, which provides feedstock flexibility [3] - Management emphasized ongoing investments in flexible feedstock capabilities and long-term cost management [7] Future Outlook - Management provided guidance for ammonia plant utilization rates between 93% and 98% for Q3 2025, with direct operating expenses projected at $60–65 million [9] - Full-year 2025 capital expenditures are expected to be between $50–60 million, reflecting a commitment to environmental compliance and competitive pricing [10]

Core Viewpoint - CVR Partners, LP is preparing to discuss its second quarter 2025 earnings, highlighting the participation of key executives and the potential for forward-looking statements during the call [1][2]. Group 1: Company Overview - The conference call is hosted by Richard Roberts, with participation from CEO Mark Pytosh and CFO Dane Neumann, indicating a strong management presence [1][2]. - The call is recorded, suggesting a formal approach to investor communication [1]. Group 2: Financial Disclosures - The company will discuss non-GAAP financial measures, with reconciliations to GAAP measures provided in the earnings release, emphasizing transparency in financial reporting [3].

[Preliminary Information](index=1&type=section&id=Preliminary%20Information) [Form 10-Q Filing Details](index=1&type=section&id=Form%2010-Q%20Filing%20Details) This section provides CVR Partners, LP's basic filing information for its Quarterly Report on Form 10-Q for the period ended June 30, 2025, including registrant details and compliance status - CVR Partners, LP filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) Condensed Consolidated Balance Sheets (in thousands) | Indicator | Value | | :--- | :--- | | Commission file number | 001-35120 | | Registrant's telephone number | (281) 207-3200 | | Common units outstanding (July 25, 2025) | 10,569,637 | | Filer status | Accelerated filer | [Important Information Regarding Forward-Looking Statements](index=3&type=section&id=Important%20Information%20Regarding%20Forward-Looking%20Statements) This section outlines the report's forward-looking statements, emphasizing that actual results may differ materially due to various risks and uncertainties beyond the company's control - The report contains forward-looking statements subject to risks and uncertainties, including future operations, financial position, estimated revenues, growth, capital projects, and impacts of legal proceedings[9](index=9&type=chunk) - Key risks include volatility in business, market conditions, fertilizer/natural gas prices, weather impacts, dependence on third-party suppliers, production levels, product pricing, and operational accidents[10](index=10&type=chunk) - Regulatory changes, political uncertainty, climate change initiatives, and geopolitical conflicts (e.g., Russia-Ukraine war, Middle East conflicts) are also significant factors[11](index=11&type=chunk) - The company does not undertake to publicly update or revise any forward-looking statements except as required by law[12](index=12&type=chunk) [Information About Us](index=5&type=section&id=Information%20About%20Us) CVR Partners, LP provides access to its SEC filings and other investor information free of charge on its website, www.CVRPartners.com, and notes the SEC also maintains a website for public filings - CVR Partners makes its annual, quarterly, and current reports, along with other investor information, available on its website (www.CVRPartners.com) and through the SEC's website (www.sec.gov)[13](index=13&type=chunk)[14](index=14&type=chunk) [PART I. Financial Information](index=6&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents CVR Partners, LP's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, partners' capital, and cash flows, with detailed notes for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $242,197 | $233,541 | | Total assets | $997,996 | $1,018,724 | | Total current liabilities | $70,273 | $111,349 | | Total long-term liabilities | $611,182 | $614,305 | | Total partners' capital | $316,541 | $293,070 | | Total liabilities and partners' capital | $997,996 | $1,018,724 | - Total assets decreased by approximately **$20.7 million** from December 31, 2024, to June 30, 2025, while total partners' capital increased by approximately **$23.5 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per unit data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $168,559 | $132,901 | $311,425 | $260,565 | | Operating income | $46,318 | $33,564 | $80,908 | $53,623 | | Net income | $38,768 | $26,219 | $65,856 | $38,798 | | Basic and diluted EPS | $3.67 | $2.48 | $6.23 | $3.67 | - Net sales increased by **$35.6 million (26.8%)** for the three months ended June 30, 2025, compared to the same period in 2024[19](index=19&type=chunk) - Net sales increased by **$50.8 million (19.5%)** for the six months ended June 30, 2025, compared to the same period in 2024[19](index=19&type=chunk) - Net income increased by **$12.5 million (47.7%)** for the three months ended June 30, 2025, compared to the same period in 2024[19](index=19&type=chunk) - Net income increased by **$27.1 million (69.8%)** for the six months ended June 30, 2025, compared to the same period in 2024[19](index=19&type=chunk) [Condensed Consolidated Statements of Partners' Capital](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Partners'%20Capital) Condensed Consolidated Statements of Partners' Capital (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Partners' Capital | $316,541 | $293,070 | - Partners' capital increased by **$23.5 million** from December 31, 2024, to June 30, 2025, primarily due to net income, partially offset by cash distributions[22](index=22&type=chunk) - Cash distributions to common unitholders (affiliates and non-affiliates) totaled **$45.26 million** for the six months ended June 30, 2025, compared to **$38.05 million** for the same period in 2024[22](index=22&type=chunk)[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $79,493 | $51,025 | | Net cash used in investing activities | $(10,690) | $(10,730) | | Net cash used in financing activities | $(45,260) | $(38,050) | | Net increase in cash and cash equivalents | $23,543 | $2,245 | | Cash and cash equivalents, end of period | $114,400 | $47,524 | - Net cash provided by operating activities increased by **$28.5 million**, driven by higher net income[25](index=25&type=chunk) - Net cash used in financing activities increased by **$7.2 million**, primarily due to higher cash distributions and capital lease obligation payments[25](index=25&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - CVR Partners, LP is a Delaware limited partnership formed in 2011 by CVR Energy, Inc. to operate its nitrogen fertilizer business, producing ammonia and urea ammonium nitrate (UAN) at facilities in Coffeyville, Kansas, and East Dubuque, Illinois[27](index=27&type=chunk) Ownership Structure as of June 30, 2025 | Interest Holder | Percentage of Limited Partner Interests | | :--- | :--- | | Public common unitholders | ~60% | | CVR Energy (through subsidiaries) | ~37% | | Icahn Enterprises L.P. (IEP) and affiliates | ~3% | - The One Big Beautiful Bill Act, signed July 4, 2025, permanently extended several TCJA provisions, which the Partnership anticipates will benefit future income tax balances[31](index=31&type=chunk) - Total revenue for the six months ended June 30, 2025, was **$311.4 million**, with UAN sales contributing **$195.7 million** and Ammonia sales contributing **$67.2 million**[47](index=47&type=chunk) - Share-based compensation expense increased significantly, totaling **$4.3 million** for the six months ended June 30, 2025, compared to **$2.7 million** in the prior year, driven by higher market prices for common units[51](index=51&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and cash flows, highlighting key external variables and management actions [Partnership Overview](index=18&type=section&id=Partnership%20Overview) - CVR Partners, LP, a Delaware limited partnership formed by CVR Energy, Inc., operates two nitrogen fertilizer manufacturing facilities in Coffeyville, Kansas, and East Dubuque, Illinois, producing ammonia and urea ammonium nitrate (UAN) for wholesale distribution[66](index=66&type=chunk) [Strategy and Goals](index=18&type=section&id=Strategy%20and%20Goals) - The Partnership's mission is to be a top-tier North American nitrogen-based fertilizer company, focusing on safe and reliable operations, superior performance, and profitable growth[68](index=68&type=chunk) - Core Values: Safety, Environment, Integrity, Corporate Citizenship, and Continuous Improvement[68](index=68&type=chunk) - Strategic Objectives: Continuous improvement in Environmental, Health & Safety (EH&S), achieving industry-leading utilization rates, maximizing market capture through optimized pricing and reduced variable costs, and maintaining financial discipline with low operating costs and disciplined capital deployment[69](index=69&type=chunk)[74](index=74&type=chunk) [Industry Factors and Market Indicators](index=19&type=section&id=Industry%20Factors%20and%20Market%20Indicators) - Earnings and cash flows are primarily affected by nitrogen fertilizer product prices, utilization, and operating costs (pet coke and natural gas)[70](index=70&type=chunk)[71](index=71&type=chunk) - The general business environment is expected to remain volatile due to feedstock availability/prices, product demand/prices, inflation, and global supply disruptions[73](index=73&type=chunk) - The One Big Beautiful Bill Act, signed July 4, 2025, permanently extended several 2017 Tax Cuts and Jobs Act (TCJA) provisions, which the Partnership anticipates will benefit future income tax balances[74](index=74&type=chunk) - Geopolitical matters (Russia-Ukraine war, Middle East conflicts) continue to pose significant risks to global markets, potentially disrupting fertilizer, agriculture, and feedstock trade[76](index=76&type=chunk) - Regulatory environment changes, including EPA's conventional biofuel volume limits (15 billion gallons for 2023-2027) and shifting climate-related rules, impact the business[77](index=77&type=chunk) - Long-term fundamentals for the U.S. nitrogen fertilizer industry remain strong, driven by increasing global population, decreasing arable land, evolving diets, and sustained use of corn/soybeans for renewable fuels[79](index=79&type=chunk) - USDA estimates **95.2 million corn acres** planted in spring 2025 (up **4.9% YoY**) and **83.4 million soybean acres** (down **4.3% YoY**), favoring corn planting due to lower input costs and relative grain prices[83](index=83&type=chunk) - Pet coke prices declined in 2024 and further into 2025, while natural gas prices are expected to remain volatile due to structural shortages in Europe[88](index=88&type=chunk) - The Coffeyville Facility is exploring utilizing natural gas as an optional feedstock and increasing ammonia production, aiming for dual feedstock flexibility[89](index=89&type=chunk) - The Partnership is also executing projects to improve reliability, expand diesel exhaust fluid production, and install nitrous oxide abatement units[90](index=90&type=chunk)[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Ammonia Utilization Rate | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | 91% | 102% | | Six Months Ended June 30 | 96% | 96% | - Consolidated ammonia utilization decreased to **91%** for Q2 2025 (vs. **102%** in Q2 2024) due to planned downtime for control systems upgrades and minor unplanned outages at the East Dubuque Facility[100](index=100&type=chunk) - Net sales for the three months ended June 30, 2025, increased by **$35.6 million** to **$168.6 million**, primarily driven by favorable UAN sales volumes and prices (+$21.0 million) and ammonia sales volumes and prices (+$11.7 million)[109](index=109&type=chunk) - Net sales for the six months ended June 30, 2025, increased by **$50.8 million** to **$311.4 million**, driven by favorable UAN sales (+$31.3 million) and ammonia sales (+$8.0 million)[110](index=110&type=chunk) - UAN and ammonia sales prices were favorable in 2025 due to improved market conditions, tight inventory levels from increased planting acreage, and domestic/international production outages[111](index=111&type=chunk) - Cost of materials and other increased to **$32.5 million** (Q2 2025) and **$60.4 million** (YTD 2025), primarily due to increased sales volumes, higher natural gas prices, and increased distribution costs, partially offset by lower pet coke prices[115](index=115&type=chunk) - Direct operating expenses (exclusive of depreciation and amortization) increased to **$60.5 million** (Q2 2025) and **$115.0 million** (YTD 2025), mainly due to increased sales volumes, higher utility costs (natural gas and electricity), and increased personnel costs[116](index=116&type=chunk) - Selling, general, and administrative expenses increased to **$8.0 million** (Q2 2025) and **$15.9 million** (YTD 2025), primarily due to higher share-based compensation from increased market prices for CVR Partners' common units[118](index=118&type=chunk) Production Volumes (in thousands of tons) | Product | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Ammonia (gross produced) | 197 | 221 | 413 | 414 | | Ammonia (net available for sale) | 54 | 69 | 117 | 130 | | UAN | 321 | 337 | 668 | 643 | Feedstock Usage and Cost | Feedstock | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Petroleum coke used (thousands of tons) | 130 | 133 | 261 | 261 | | Petroleum coke cost (dollars per ton) | $56.68 | $62.96 | $49.54 | $69.21 | | Natural gas used (thousands of MMBtus) | 1,897 | 2,213 | 4,057 | 4,361 | | Natural gas cost (dollars per MMBtu) | $3.29 | $1.93 | $4.00 | $2.51 | [Non-GAAP Measures](index=29&type=section&id=Non-GAAP%20Measures) Management uses non-GAAP measures like EBITDA, Adjusted EBITDA, and Available Cash for Distribution to evaluate performance and liquidity, providing insights into operating performance and debt servicing ability - Management uses non-GAAP measures like EBITDA, Adjusted EBITDA, and Available Cash for Distribution to evaluate performance and liquidity, providing insights into operating performance and debt servicing ability[119](index=119&type=chunk)[122](index=122&type=chunk) Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Available Cash for Distribution (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $38,768 | $26,219 | $65,856 | $38,798 | | EBITDA and Adjusted EBITDA | $67,209 | $53,769 | $120,065 | $93,279 | | Available cash for distribution | $41,102 | $20,113 | $65,027 | $40,425 | - EBITDA and Adjusted EBITDA increased by **$13.4 million (24.9%)** for Q2 2025 and **$26.8 million (28.7%)** for YTD 2025[123](index=123&type=chunk) - Available Cash for Distribution significantly increased by **$20.9 million (103.9%)** for Q2 2025 and **$24.6 million (60.9%)** for YTD 2025[123](index=123&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The primary sources of liquidity are cash from operations and existing cash/cash equivalents, supplemented by borrowings and reserves, with principal uses including working capital, capital expenditures, debt service, and unitholder distributions - The primary sources of liquidity are cash from operations and existing cash/cash equivalents, supplemented by borrowings and reserves[127](index=127&type=chunk) Liquidity Position (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $114,400 | $90,857 | | Available under ABL Credit Facility | $47,274 | $38,900 | | Total liquidity | $161,674 | $129,757 | - Total liquidity increased by **$31.9 million** from December 31, 2024, to June 30, 2025[131](index=131&type=chunk) - The Partnership was in compliance with all debt covenants as of June 30, 2025[130](index=130&type=chunk) - Total capital expenditures for the six months ended June 30, 2025, were **$16.7 million**, with estimated full-year 2025 expenditures between **$55.0 million** and **$65.0 million**[134](index=134&type=chunk) - A planned turnaround at the Coffeyville Facility is scheduled for Q4 2025, estimated to cost **$15 million** and last 30 days, funded by cash reserves[135](index=135&type=chunk) Quarterly Distributions Paid (in thousands) | Related Period | Distributions Per Common Unit | Public Unitholders | IEP | CVR Energy | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 - 4th Quarter (Paid March 10, 2025) | $1.75 | $11,381 | $305 | $6,811 | $18,497 | | 2025 - 1st Quarter (Paid May 19, 2025) | $2.26 | $14,477 | $615 | $8,796 | $23,888 | | Total 2025 quarterly distributions | $4.01 | $25,858 | $920 | $15,607 | $42,385 | - For Q2 2025, a distribution of **$3.89 per common unit** (approx. **$41.1 million** total) was declared, payable August 18, 2025[138](index=138&type=chunk) [Cash Flows](index=33&type=section&id=Cash%20Flows) Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Operating activities | $79,493 | $51,025 | $28,468 | | Investing activities | $(10,690) | $(10,730) | $40 | | Financing activities | $(45,260) | $(38,050) | $(7,210) | | Net increase in cash and cash equivalents | $23,543 | $2,245 | $21,298 | - Operating cash flows increased by **$28.5 million**, primarily due to a **$27.1 million** increase in net income from favorable UAN and ammonia pricing and sales volumes[140](index=140&type=chunk) - Investing cash flows remained relatively stable, with a slight increase in distributions from equity method investment offset by higher capital expenditures[141](index=141&type=chunk) - Financing cash flows decreased by **$7.2 million**, mainly due to increased cash distributions paid and payments related to capital lease obligations[142](index=142&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) - No material modifications were made to the critical accounting estimates disclosed in the 2024 Form 10-K during the three and six months ended June 30, 2025[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's market risks as of and for the three and six months ended June 30, 2025, compared to those previously disclosed in the 2024 Form 10-K - No material changes to market risks were identified for the periods ended June 30, 2025, compared to the 2024 Form 10-K[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Partnership's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Executive Chairman, CEO, and CFO concluded that the Partnership's disclosure controls and procedures were effective as of June 30, 2025[145](index=145&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There were no material changes in the Partnership's internal control over financial reporting during the fiscal quarter ended June 30, 2025[146](index=146&type=chunk) [PART II. Other Information](index=35&type=section&id=PART%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 ('Commitments and Contingencies') in Part I, Item 1 for a description of legal, administrative, and environmental proceedings - Information on legal proceedings is incorporated by reference from Note 10 ('Commitments and Contingencies') in the financial statements[148](index=148&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K, but acknowledges that additional unknown or immaterial risks could still adversely affect the business - No material changes to risk factors were reported from the 2024 Form 10-K[149](index=149&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) This section provides updates on corporate governance and executive management, including changes to the Board of Directors and employment agreements for key executives [Board of Directors](index=35&type=section&id=Board%20of%20Directors) - On July 28, 2025, the Board of Directors increased its size from six to seven members and appointed Kevan Vick as an independent director, effective August 1, 2025[151](index=151&type=chunk) [Executive Management](index=35&type=section&id=Executive%20Management) - An amendment to David L. Lamp's employment agreement allows him to resign with five months' notice[154](index=154&type=chunk) - David L. Lamp notified CVR Energy of his intention to resign as President and CEO of CVR Energy and its subsidiaries (except as a Director of the General Partner and CVR Energy) effective December 31, 2025[157](index=157&type=chunk) - Mark A. Pytosh's employment agreement was approved, appointing him as President and CEO and a Director of CVR Energy, effective January 1, 2026, with a base salary of **$1,100,000** and eligibility for annual bonuses and long-term incentive awards[158](index=158&type=chunk) - Mr. Pytosh is eligible for transaction bonuses of **$10 million** for a Significant CVI Transaction and **$2.5 million** for a Significant UAN Transaction[159](index=159&type=chunk) - The agreement also outlines severance payments for a Qualifying Termination, including a cash payment of **1.5 times salary** plus average annual bonus, a pro-rata bonus, and accelerated vesting of unvested incentive awards[160](index=160&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including incentive plans, employment agreements, and certifications, and provides a disclaimer regarding the nature of information contained in these exhibits - The report includes various exhibits such as the 2025 Long-Term Incentive Plan, performance-based bonus plan, and amendments to employment agreements for key executives[166](index=166&type=chunk) - Exhibit 10.6: Amendment to Employment Agreement with David L. Lamp[166](index=166&type=chunk) - Exhibit 10.7: Employment Agreement with Mark A. Pytosh[166](index=166&type=chunk) - Certifications under Rule 13a-14(a)/15d-14(a) and Section 1350 are also filed[166](index=166&type=chunk)

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net sales of $169 million, net income of $39 million, and EBITDA of $67 million, with a declared distribution of $3.89 per common unit [5][8] - Consolidated ammonia plant utilization was 91%, impacted by planned and unplanned downtime, with combined ammonia production of 197,000 gross tons [5][8] - UAN and ammonia prices increased by 181% and 14% respectively compared to the prior year, driven by strong demand and tight inventories [6][12] Business Line Data and Key Metrics Changes - The company sold approximately 345,000 tons of UAN at an average price of $317 per ton and 57,000 tons of ammonia at an average price of $593 per ton [6][8] - Direct operating expenses for Q2 2025 were $60 million, with an increase of approximately $6 million from the previous year due to higher natural gas and electricity costs [8][34] Market Data and Key Metrics Changes - The USDA estimates a 4% increase in corn planting and a 3% decrease in soybean planting for 2025, with yield estimates of 181 bushels per acre for corn and 52.5 bushels per acre for soybeans [11][12] - Global nitrogen fertilizer inventories remain tight, supporting pricing, with geopolitical conflicts impacting supply [13][14] Company Strategy and Development Direction - The company is focusing on expanding ammonia capacity by approximately 8% and improving feedstock flexibility at its Coffeyville facility [16][18] - Ongoing projects aim to enhance reliability and production rates, with a target of operating plants at utilization rates above 95% [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for nitrogen fertilizers continuing into the second half of the year, despite some planned and unplanned downtime [11][12] - The company anticipates a significant portion of capital spending for 2025 will be funded through cash reserves, with total capital spending estimated between $55 million and $65 million [8][9] Other Important Information - The company plans a 30-day turnaround at the Coffeyville facility starting in early October, with expected expenses of approximately $15 million [18][19] - The CEO of the parent company, CVR Energy, announced retirement, with the current CEO of CVR Partners set to take over the role [19] Q&A Session Summary Question: Timing of UAN summer fill program and pricing strength - Management indicated that the summer UAN fill has not yet been completed, with expectations for it to occur in the next few weeks, and pricing is expected to decline less than usual due to tight supply [24][25] Question: Outlook on ammonia pricing for fall application - Management expects fall pricing to be similar to spring pricing, with a discount anticipated but not as significant as in previous years [26] Question: Increase in direct operating costs and maintenance expenses - Management acknowledged higher repair costs and inventory drawdowns contributing to increased direct operating expenses, with expectations for continued elevated costs in the third quarter [27][34] Question: Status of unplanned downtime and future utilization - Management confirmed that planned outages were managed well, and unplanned outages were addressed without expectation of recurrence [35][36] Question: Industry consolidation outlook - Management noted a favorable view towards consolidation in the nitrogen fertilizer space, influenced by geopolitical events and the potential merger of major rail companies [41][42] Question: Capacity from brownfield reliability and redundancy projects - Management indicated that brownfield projects could add approximately 100 tons per day of ammonia production at Coffeyville and 5% at East Dubuque, emphasizing the cost-effectiveness of these projects [44][45]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of CVR Partners' strong Q2 2025 financial and operational performance, along with its cash distribution declaration [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) CVR Partners reported substantial year-over-year growth in Q2 2025 net income, EPS, EBITDA, and net sales Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Income | $39 million | $26 million | +50% | | EPS | $3.67/unit | $2.48/unit | +47.98% | | EBITDA | $67 million | $54 million | +24.07% | | Net Sales | $169 million | $133 million | +27.07% | [Operational Performance & Strategic Focus](index=1&type=section&id=Operational%20Performance%20%26%20Strategic%20Focus) CVR Partners achieved solid Q2 2025 operational performance, benefiting from tight nitrogen fertilizer markets and strong pricing - Combined ammonia production rate was **91%** for Q2 2025, indicating solid operational performance[3](index=3&type=chunk) - Nitrogen fertilizer supply and demand balances remain tight, contributing to strong pricing through the planting season[3](index=3&type=chunk) Q2 2025 Production Volumes (YoY) | Product | Q2 2025 (thousand tons) | Q2 2024 (thousand tons) | YoY Change | | :------ | :---------------------- | :---------------------- | :--------- | | Ammonia (combined) | 197 | 221 | -10.9% | | Ammonia (net for sale) | 54 | 69 | -21.6% | | UAN | 321 | 337 | -4.8% | Q2 2025 Average Realized Gate Prices (YoY) | Product | Q2 2025 ($/ton) | Q2 2024 ($/ton) | YoY Change | | :------ | :-------------- | :-------------- | :--------- | | Ammonia | $593 | $520 | +14% | | UAN | $317 | $268 | +18% | - Strategic focus remains on safe, reliable operations and generating free cash flow amidst favorable market conditions[4](index=4&type=chunk) [Cash Distribution Declaration](index=1&type=section&id=Cash%20Distribution%20Declaration) CVR Partners declared a Q2 2025 cash distribution of $3.89 per common unit, with variable distributions based on operational and market factors - A cash distribution of **$3.89 per common unit** was declared for Q2 2025[4](index=4&type=chunk)[6](index=6&type=chunk)[9](index=9&type=chunk) - Distributions are variable and depend on operating performance, product prices, maintenance capital expenditures, and cash reserves[7](index=7&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of CVR Partners, its business, investor communication practices, and forward-looking statement disclaimers [About CVR Partners, LP](index=2&type=section&id=About%20CVR%20Partners%2C%20LP) CVR Partners, a Delaware limited partnership, produces and distributes nitrogen fertilizers like UAN and ammonia from its two manufacturing facilities - CVR Partners is a Delaware limited partnership focused on producing, marketing, and distributing nitrogen fertilizer products[13](index=13&type=chunk) - Primary products are urea ammonium nitrate (UAN) and ammonia, used by farmers to improve crop yield and quality[13](index=13&type=chunk) - Operates two nitrogen fertilizer manufacturing facilities: Coffeyville, Kansas (**1,300 ton/day ammonia**, **3,100 ton/day UAN**, **89 million scf/day gasifier**) and East Dubuque, Illinois (**1,075 ton/day ammonia**, **950 ton/day UAN**)[13](index=13&type=chunk) [Investor Communications](index=2&type=section&id=Investor%20Communications) CVR Partners disseminates material information through SEC filings, press releases, webcasts, and its Investor Relations website - Material information is announced via SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of the company's website[14](index=14&type=chunk) - Information posted on the website could be deemed material, and investors are encouraged to review it[14](index=14&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to various risks and uncertainties, with no obligation for public updates unless legally required - Statements about future results, performance, prospects, opportunities, plans, actions, and events are considered forward-looking statements[12](index=12&type=chunk) - These statements involve known and unknown risks and uncertainties, many beyond the company's control, including economic effects of pandemics, planting season impacts, operating hazards, regulatory compliance costs, and geopolitical instability[12](index=12&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, and the company disclaims any obligation to update them publicly, except as legally required[12](index=12&type=chunk) [Financial Performance](index=5&type=section&id=Financial%20Performance) This section details CVR Partners' financial results, including statements of operations, balance sheet, cash flow, and capital expenditures for the reported periods [Statement of Operations](index=5&type=section&id=Statement%20of%20Operations) CVR Partners reported substantial year-over-year increases in net sales, operating income, net income, and EPS for Q2 and 6M 2025 Statement of Operations Data (Q2 and 6M Ended June 30) | Metric (in thousands, except per unit data) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Net sales | $168,559 | $132,901 | $311,425 | $260,565 | | Operating income | $46,318 | $33,564 | $80,908 | $53,623 | | Net income | $38,768 | $26,219 | $65,856 | $38,798 | | Basic and diluted earnings per common unit | $3.67 | $2.48 | $6.23 | $3.67 | | EBITDA | $67,209 | $53,769 | $120,065 | $93,279 | | Available Cash for Distribution | $41,102 | $20,113 | $65,027 | $40,425 | [Components of Net Sales](index=5&type=section&id=Components%20of%20Net%20Sales) Fertilizer product sales were the primary driver of net sales, showing strong growth in Q2 and 6M 2025 year-over-year Components of Net Sales (Q2 and 6M Ended June 30) | Component (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :----------------------- | :------ | :------ | :------ | :------ | | Fertilizer product sales | $153,852 | $119,400 | $282,465 | $237,215 | | Other | $14,707 | $13,501 | $28,960 | $23,350 | | Total net sales | $168,559 | $132,901 | $311,425 | $260,565 | [Selected Balance Sheet Data](index=6&type=section&id=Selected%20Balance%20Sheet%20Data) CVR Partners' balance sheet as of June 30, 2025, shows increased cash and working capital, with reduced total liabilities and higher partners' capital Selected Balance Sheet Data (as of June 30, 2025 vs. Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $114,400 | $90,857 | | Working capital | $171,924 | $122,192 | | Total assets | $997,996 | $1,018,724 | | Total debt and finance lease obligation | $569,968 | $568,851 | | Total liabilities | $681,455 | $725,654 | | Total partners' capital | $316,541 | $293,070 | [Selected Cash Flow Data](index=6&type=section&id=Selected%20Cash%20Flow%20Data) Operating cash flow significantly increased in Q2 and 6M 2025, while investing and financing activities resulted in net cash outflows Selected Cash Flow Data (Q2 and 6M Ended June 30) | Activity (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------- | :------ | :------ | :------ | :------ | | Operating activities | $24,102 | $8,608 | $79,493 | $51,025 | | Investing activities | $(4,883) | $(5,413) | $(10,690) | $(10,730) | | Financing activities | $(26,594) | $(20,293) | $(45,260) | $(38,050) | | Net (decrease) increase in cash | $(7,375) | $(17,098) | $23,543 | $2,245 | [Capital Expenditures](index=6&type=section&id=Capital%20Expenditures) Total capital expenditures, particularly growth-related, significantly increased in Q2 and 6M 2025 compared to the prior year Capital Expenditures (Q2 and 6M Ended June 30) | Type (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------ | :------ | :------ | :------ | :------ | | Maintenance | $6,560 | $4,831 | $10,253 | $9,103 | | Growth | $4,187 | $64 | $6,426 | $403 | | Total | $10,747 | $4,895 | $16,679 | $9,506 | [Operational Data & Market Trends](index=6&type=section&id=Operational%20Data%20%26%20Market%20Trends) This section presents key operational metrics, sales and production volumes, feedstock costs, and relevant market indicators for CVR Partners [Key Operating Data](index=6&type=section&id=Key%20Operating%20Data) Consolidated ammonia utilization rate decreased to 91% in Q2 2025, while the six-month rate remained stable at 96% Ammonia Utilization Rate (Q2 and 6M Ended June 30) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :----- | :------ | :------ | :------ | :------ | | Ammonia utilization rate | 91% | 102% | 96% | 96% | [Sales and Production Data](index=7&type=section&id=Sales%20and%20Production%20Data) Q2 and 6M 2025 saw increased sales volumes and higher gate prices for ammonia and UAN, despite decreased ammonia production Consolidated Sales Volumes (Q2 and 6M Ended June 30) | Product (thousand tons) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------- | :------ | :------ | :------ | :------ | | Ammonia | 57 | 43 | 117 | 113 | | UAN | 345 | 330 | 681 | 614 | Consolidated Product Pricing at Gate (Q2 and 6M Ended June 30) | Product (dollars per ton) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------ | :------ | :------ | :------ | :------ | | Ammonia | $593 | $520 | $573 | $525 | | UAN | $317 | $268 | $287 | $268 | Consolidated Production Volume (Q2 and 6M Ended June 30) | Product (thousand tons) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------- | :------ | :------ | :------ | :------ | | Ammonia (gross produced) | 197 | 221 | 413 | 414 | | Ammonia (net available for sale) | 54 | 69 | 117 | 130 | | UAN | 321 | 337 | 668 | 643 | Feedstock Usage and Cost (Q2 and 6M Ended June 30) | Feedstock Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Petroleum coke used (thousand tons) | 130 | 133 | 261 | 261 | | Petroleum coke cost ($/ton) | $56.68 | $62.96 | $49.54 | $69.21 | | Natural gas used (thousand MMBtus) | 1,897 | 2,213 | 4,057 | 4,361 | | Natural gas cost ($/MMBtu) | $3.29 | $1.93 | $4.00 | $2.51 | [Key Market Indicators](index=7&type=section&id=Key%20Market%20Indicators) Market prices for ammonia, UAN, and NYMEX natural gas increased in Q2 and 6M 2025, indicating favorable nitrogen fertilizer market conditions Key Market Indicators (Q2 and 6M Ended June 30) | Market Indicator (dollars per ton/MMBtu) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------- | :------ | :------ | :------ | :------ | | Ammonia — Southern plains | $576 | $523 | $569 | $545 | | Ammonia — Corn belt | $630 | $565 | $624 | $581 | | UAN — Corn belt | $403 | $288 | $364 | $290 | | Natural gas NYMEX | $3.51 | $2.32 | $3.69 | $2.21 | [Outlook & Non-GAAP Measures](index=4&type=section&id=Outlook%20%26%20Non-GAAP%20Measures) This section provides CVR Partners' Q3 2025 outlook and defines and reconciles its non-GAAP financial measures [Q3 2025 Outlook](index=8&type=section&id=Q3%202025%20Outlook) CVR Partners projects Q3 2025 ammonia utilization between 93-98%, direct operating expenses of $60-65 million, and total capital expenditures of $20-25 million Q3 2025 Outlook | Metric | Low | High | | :-------------------------- | :-- | :--- | | Ammonia utilization rate | 93% | 98% | | Direct operating expenses (in millions) | $60 | $65 | | Total capital expenditures (in millions) | $20 | $25 | [Non-GAAP Measures Definitions](index=4&type=section&id=Non-GAAP%20Measures%20Definitions) CVR Partners defines non-GAAP measures like EBITDA, Adjusted EBITDA, and Available Cash for Distribution to assess performance and liquidity - EBITDA is defined as Net income (loss) before interest expense, net, income tax expense (benefit), and depreciation and amortization expense[17](index=17&type=chunk) - Adjusted EBITDA is EBITDA adjusted for significant noncash items or items not attributable to ongoing operations[17](index=17&type=chunk) - Available Cash for Distribution is EBITDA excluding noncash items, less reserves for maintenance capital expenditures, debt service, other contractual obligations, and future operating or capital needs, as deemed necessary by the Board[18](index=18&type=chunk) [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section reconciles net income to EBITDA, Adjusted EBITDA, and Available Cash for Distribution, detailing adjustments for non-GAAP metric derivation Reconciliation of Net Income to EBITDA, Adjusted EBITDA, and Available Cash for Distribution (Q2 and 6M Ended June 30) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Net income | $38,768 | $26,219 | $65,856 | $38,798 | | Interest expense, net | 7,580 | 7,510 | 15,307 | 15,175 | | Income tax benefit | — | — | — | (25) | | Depreciation and amortization | 20,861 | 20,040 | 38,902 | 39,331 | | **EBITDA and Adjusted EBITDA** | **67,209** | **53,769** | **120,065** | **93,279** | | Accrued interest expense (excluding capitalized interest) | (9,064) | (8,485) | (18,023) | (16,970) | | Future operating needs | — | — | (8,000) | — | | Capital expenditures | (14,015) | (21,106) | (25,608) | (29,653) | | Turnaround expenditures, net | (2,308) | (3,235) | (5,130) | (6,593) | | Equity method investment | (720) | (830) | 1,723 | 362 | | **Available cash for distribution** | **$41,102** | **$20,113** | **$65,027** | **$40,425** | [Other Information](index=1&type=section&id=Other%20Information) This section includes details on the Q2 2025 earnings call, a qualified notice for distributions, and company contact information [Second Quarter 2025 Earnings Conference Call](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Conference%20Call) CVR Partners will host its Q2 2025 earnings conference call on July 31, 2025, with webcast and replay options available - The Q2 2025 Earnings Conference Call is scheduled for Thursday, July 31, at **11 a.m. Eastern**[8](index=8&type=chunk) - The call will be webcast live on the Investor Relations section of CVR Partners' website (www.CVRPartners.com) and accessible via dial-in (**877) 407-8029**[10](index=10&type=chunk) - A webcast archive and call replay will be available for **14 days**[10](index=10&type=chunk) [Qualified Notice](index=2&type=section&id=Qualified%20Notice) This notice confirms 100% of CVR Partners' foreign investor distributions are U.S. effectively connected income, subject to federal tax withholding - **100%** of CVR Partners' distributions to foreign investors are attributable to income effectively connected with a United States trade or business[11](index=11&type=chunk) - Distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate[11](index=11&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Contact details for Investor Relations and Media Relations are provided for inquiries regarding CVR Partners - Investor Relations contact: Richard Roberts, **(281) 207-3205**, InvestorRelations@CVRPartners.com[15](index=15&type=chunk) - Media Relations contact: Brandee Stephens, **(281) 207-3516**, MediaRelations@CVRPartners.com[15](index=15&type=chunk)

Core Insights - CVR Partners reported a net income of $39 million, or $3.67 per common unit, for Q2 2025, an increase from $26 million, or $2.48 per common unit, in Q2 2024 [1][9] - The company achieved an EBITDA of $67 million on net sales of $169 million for Q2 2025, compared to an EBITDA of $54 million on net sales of $133 million for Q2 2024 [1][19] - The average realized gate prices for ammonia and UAN increased by 14% and 18% respectively compared to the previous year [4][30] Financial Performance - Net sales for Q2 2025 were $168.6 million, up from $132.9 million in Q2 2024, with fertilizer product sales contributing $153.9 million [19][21] - Operating income for Q2 2025 was $46.3 million, compared to $33.6 million in Q2 2024 [19] - The company declared a cash distribution of $3.89 per common unit for Q2 2025, to be paid on August 18, 2025 [5][37] Production and Operations - Ammonia production decreased to 197,000 tons in Q2 2025 from 221,000 tons in Q2 2024, with 54,000 net tons available for sale [3][26] - The ammonia utilization rate was reported at 91% for Q2 2025, down from 102% in Q2 2024 [25] - The company produced 321,000 tons of UAN in Q2 2025, slightly down from 337,000 tons in Q2 2024 [3][26] Market Conditions - The nitrogen fertilizer market remains tight, with strong pricing continuing through the end of the planting season [2] - Average realized prices for ammonia and UAN were $593 and $317 per ton respectively in Q2 2025, compared to $520 and $268 per ton in Q2 2024 [4][30] - The company is focused on maintaining safe and reliable operations while generating free cash flow [3][2] Cash Flow and Capital Expenditures - Net cash flow from operating activities for Q2 2025 was $24.1 million, compared to $8.6 million in Q2 2024 [23] - Total capital expenditures for Q2 2025 were $10.7 million, up from $4.9 million in Q2 2024 [24] - Available cash for distribution was reported at $41.1 million for Q2 2025, compared to $20.1 million for Q2 2024 [33]