Core Viewpoint - CVR Partners, LP is set to release its fourth quarter and full-year 2024 earnings results on February 18, 2025, followed by a teleconference on February 19, 2025, to discuss these results [1][2][3] Company Overview - CVR Partners, LP is headquartered in Sugar Land, Texas, and operates as a Delaware limited partnership focused on the production, marketing, and distribution of nitrogen fertilizer products [4] - The company primarily produces urea ammonium nitrate (UAN) and ammonia, which are essential for improving crop yield and quality [4] - The Coffeyville, Kansas facility has a production capacity of 1,300 tons per day for ammonia and 3,100 tons per day for UAN, along with a gasifier complex capable of producing 89 million standard cubic feet per day of hydrogen [4] - The East Dubuque, Illinois facility includes a 1,075 tons per day ammonia unit and a 950 tons per day UAN unit [4]

Financial Performance - Net sales for the three months ended September 30, 2024, were $125,203,000, a decrease of 4.3% from $130,592,000 in the same period of 2023[11]. - Operating income increased to $10,996,000 for the three months ended September 30, 2024, compared to $8,138,000 in the prior year, reflecting a growth of 35.5%[11]. - Net income for the nine months ended September 30, 2024, was $42,605, down 73.8% from $162,458 in the same period of 2023[11]. - Basic and diluted earnings per common unit for the three months ended September 30, 2024, were $0.36, compared to $0.07 in the same period of 2023[11]. - For the nine months ended September 30, 2024, total revenue was $346.6 million, a decrease of 29.9% compared to $493.5 million for the same period in 2023[37]. - For the nine months ended September 30, 2024, net sales were $385.8 million, a decrease from $539.9 million in the same period of 2023, attributed to unfavorable pricing conditions[89]. Assets and Liabilities - As of September 30, 2024, total current assets increased to $226,625,000 from $165,869,000 as of December 31, 2023, representing a growth of 36.5%[10]. - Total liabilities and partners' capital reached $986,626,000, compared to $975,332,000 at the end of 2023, reflecting a slight increase of 1.3%[10]. - Long-term debt remained stable at $547,710,000, showing minimal change from $547,308,000[10]. - Total partners' capital decreased to $287,352,000 from $302,880,000, reflecting a decline of 5.1%[10]. - Cash and cash equivalents rose significantly to $110,539,000, up from $45,279,000, marking an increase of 144.5%[10]. Revenue and Sales - Ammonia sales for the three months ended September 30, 2024, were $24.6 million, up 9.5% from $22.5 million in 2023[37]. - UAN sales decreased to $76.7 million for the three months ended September 30, 2024, down 11.1% from $86.3 million in 2023[37]. - The Partnership recognized revenue of $14.1 million during the nine months ended September 30, 2024, from deferred revenue balances[40]. - The Partnership had approximately $8.6 million of remaining performance obligations for contracts with an original expected duration of more than one year as of September 30, 2024[39]. Cash Flow and Distributions - Net cash provided by operating activities for the nine months ended September 30, 2024, was $137,750, a decrease of 47.3% from $261,389 in the same period of 2023[13]. - Cash distributions to common unitholders - Non-affiliates for the nine months ended September 30, 2024, totaled $(36,727), down from $(167,408) in the same period of 2023, reflecting a significant reduction in distributions[13]. - Available cash for distribution in Q3 2024 was $12.61 million, down from $16.37 million in Q3 2023, a decrease of 23.5%[101]. - The Partnership declared a distribution of $1.19 per common unit for the third quarter of 2024, amounting to $12.6 million, payable to unitholders[113]. Operational Insights - The Partnership operates two manufacturing facilities producing nitrogen fertilizer products, which are essential for improving crop yield and quality[14]. - The Partnership aims to achieve industry-leading utilization rates through safe and reliable operations, focusing on operational improvements and cost reductions[57]. - The company plans to utilize natural gas as an optional feedstock at the Coffeyville Facility, which could enhance production flexibility[75]. - Ammonia utilization decreased to 97% in Q3 2024 from 99% in Q3 2023, and for the nine months ended September 30, 2024, utilization was 96% compared to 101% in the same period of 2023[78]. Market and Economic Conditions - The general business environment remains volatile, influenced by feedstock availability, product demand, and inflationary pressures[62]. - Geopolitical risks, including the Middle East conflict and the Russia-Ukraine war, may disrupt global fertilizer and agriculture markets, impacting supply chains[66]. - The demand for nitrogen fertilizer is expected to remain strong due to the anticipated increase in corn planting and the ongoing use of corn for ethanol production[67]. - Seasonal fluctuations in demand for nitrogen fertilizer products are expected, influenced by weather conditions and market dynamics[61]. Cost and Expenses - The cost of materials and other decreased to $26.3 million in Q3 2024 from $31.0 million in Q3 2023, driven by lower natural gas and pet coke prices[93]. - Depreciation and amortization expense for the three months ended September 30, 2024, was $24.5 million, up from $23.9 million for the same period in 2023, reflecting a year-over-year increase of 2.5%[24]. - Share-based compensation expense for the three months ended September 30, 2024, was $714,000, a decrease of 81.4% from $3.8 million in the same period of 2023[40]. Future Outlook - The Partnership expects to capitalize approximately $21 million upon the commencement of a finance lease related to an On-Site Product Supply Agreement with Messer LLC in Q4 2024[32]. - The Partnership does not expect the adoption of new accounting standards to have a material impact on its consolidated financial statements, with additional disclosures anticipated starting December 31, 2024[21][22]. - Forward-looking statements indicate potential uncertainties regarding future operations and financial position, influenced by various external factors[5].

Financial Data and Key Metrics Changes - For Q3 2024, the company reported net sales of $125 million, net income of $4 million, and EBITDA of $36 million, with a declared distribution of $1.19 per common unit [9][14][18] - The increase in EBITDA compared to Q3 2023 was primarily due to higher market prices for ammonia and UAN, along with lower feedstock and operating expenses [14][12] - Direct operating expenses for Q3 2024 were $56 million, a decrease of approximately $3 million from Q3 2023, mainly due to lower natural gas and electricity costs [15] Business Line Data and Key Metrics Changes - Consolidated ammonia plant utilization was 97%, with combined ammonia production of 212,000 gross tons and UAN production of 321,000 tons [10] - Approximately 336,000 tons of UAN were sold at an average price of $229 per ton, while 62,000 tons of ammonia were sold at an average price of $399 per ton [11] - Ammonia prices increased by 9% and UAN prices by 3% compared to Q3 2023 [12] Market Data and Key Metrics Changes - Demand for summer UAN fill and ammonia fall prepay was strong, with low customer inventory levels ahead of fall [13] - Corn yields are expected to be the highest in history, with USDA estimating yields of almost 184 bushels per acre [21] - Geopolitical risks continue to pose a wildcard for the nitrogen fertilizer industry, particularly due to significant production capacity in the Middle East, North Africa, and Russia [24] Company Strategy and Development Direction - The company is focusing on improving reliability and redundancy at its plants, with capital spending planned for the next two to three years [29] - A project to utilize natural gas as an alternative feedstock is under consideration, which could provide flexibility in feedstock choices [26][27] - The company is also implementing debottlenecking projects to enhance reliability and production rates [28] Management Comments on Operating Environment and Future Outlook - Management noted that the company is currently in a mid-cycle environment for nitrogen fertilizer pricing, with prices increasing relative to the previous year [12][20] - The company anticipates higher volatility in the business for the remainder of 2024 and into 2025 due to geopolitical factors and natural gas market issues in Europe [24][25] - The company expects ammonia utilization rates for Q4 2024 to be between 92% and 97%, with potential downtime anticipated [19] Other Important Information - The company ended the quarter with total liquidity of $150 million, including $111 million in cash [17] - Capital spending for 2024 is estimated to be between $39 million and $42 million, with a significant portion funded through cash reserves [16] Q&A Session Summary Question: Impact of low river levels on Corn Belt prices for UAN and ammonia - Management indicated that there have not been major impacts on UAN and ammonia prices due to low river levels, as most ammonia is already positioned and transported via pipeline [33][34] Question: Cost estimates for the Coffeyville natural gas project - The project is estimated to cost around $10 million, which would be funded from reserves set aside for growth capital [35] Question: Developments regarding CVR Energy's 13D filing - Management reported no new developments regarding the 13D filing on CVR Energy this quarter [36]

Financial Performance - Third quarter net income was $4 million, or $0.36 per common unit, with EBITDA of $36 million on net sales of $125 million, compared to net income of $1 million, or $0.07 per common unit, and EBITDA of $32 million on net sales of $131 million in Q3 2023[1]. - Operating income for Q3 2024 was $11 million, an increase from $8.1 million in Q3 2023[20]. - The total net sales for the first nine months of 2024 were $385.8 million, compared to $539.9 million for the same period in 2023[20]. - Net cash flow from operating activities for the three months ended September 30, 2024, was $86,725,000, compared to $70,102,000 for the same period in 2023, representing a 23.4% increase[25]. - Available cash for distribution for the three months ended September 30, 2024, was $12,612,000, down from $16,370,000 in the same period of 2023[32]. Production and Sales - CVR Partners produced a combined 212,000 tons of ammonia in Q3 2024, slightly down from 217,000 tons in Q3 2023, with 61,000 net tons available for sale[3]. - Fertilizer sales accounted for $109.5 million of total net sales in Q3 2024, down from $116.5 million in Q3 2023[22]. - Consolidated sales volumes for ammonia in the three months ended September 30, 2024, were 62,000 tons, consistent with the same period in 2023[29]. Pricing and Market Conditions - The average realized gate prices for UAN increased by 3% to $229 per ton, while ammonia prices rose by 9% to $399 per ton compared to Q3 2023[4]. - Average product pricing for ammonia was $399 per ton for the three months ended September 30, 2024, compared to $365 per ton in the same period of 2023, reflecting a 9.3% increase[29]. Operational Efficiency - The company maintained a combined ammonia production rate of 97% during the quarter, indicating strong operational performance[2]. - Ammonia utilization rates for the three months ended September 30, 2024, were 97%, compared to 99% for the same period in 2023[27]. - The company plans to maintain ammonia utilization rates between 92% and 97% for Q4 2024[31]. Capital Expenditures - Total capital expenditures for the three months ended September 30, 2024, were $9,699,000, up from $8,283,000 in the same period of 2023, indicating a 17.1% increase[26]. - Capital expenditures for Q4 2024 are expected to range from $19 million to $23 million[31]. Cash Distribution - The company declared a cash distribution of $1.19 per common unit for Q3 2024, to be paid on November 18, 2024[5]. - The company’s variable distribution model means future distributions may fluctuate based on operational performance and market conditions[6]. Direct Operating Expenses - Direct operating expenses for Q4 2024 are projected to be between $60 million and $70 million[31]. Financial Position - Cash and cash equivalents as of September 30, 2023, were $45,279,000, with total assets of $975,332,000 and total liabilities of $672,452,000[24].

Financial Performance - Net sales for Q2 2024 were $132.9 million, a decrease of 27.2% compared to $183.0 million in Q2 2023[18]. - Operating income for Q2 2024 was $33.6 million, down 49.6% from $66.7 million in Q2 2023[18]. - Net income for the first half of 2024 was $38.8 million, a decline of 76.0% compared to $161.7 million in the same period of 2023[24]. - For the three months ended June 30, 2024, total revenue was $132.9 million, a decrease of 27.1% compared to $183.0 million for the same period in 2023[49]. - The Partnership's net sales, exclusive of freight and other, were $119.4 million for the three months ended June 30, 2024, down from $167.0 million in the prior year, representing a decline of 28.5%[49]. - Net income for the three months ended June 30, 2024, was $26.2 million, down from $59.9 million in the prior year, a decrease of 56.2%[104]. - For the six months ended June 30, 2024, net sales decreased to $260.6 million from $409.3 million for the same period in 2023, primarily due to unfavorable UAN and ammonia pricing conditions contributing $102.5 million and $35.5 million in lower revenues, respectively[111]. - EBITDA for the three months ended June 30, 2024, was $53.8 million, compared to $86.5 million for the same period in 2023, reflecting a significant decline in operational performance[124]. Cash Flow and Distributions - Cash distributions to common unitholders totaled $24.0 million for the first half of 2024, compared to $139.8 million in the same period of 2023, a decrease of 82.8%[24]. - Available Cash for Distribution for the quarter was $20.1 million, down from $43.8 million in the same quarter of 2023, indicating reduced cash flow available for unitholder distributions[124]. - Total quarterly distributions for 2024 reached $38,050,000, compared to $281,364,000 for the entire year of 2023[63]. - The Partnership declared a distribution of $1.90 per common unit for Q2 2024, totaling approximately $20.1 million, payable on August 19, 2024[63]. - Cash distributions paid in H1 2024 decreased by $183.2 million compared to the same period in 2023[143]. - The total quarterly distributions for 2023 amounted to $26.62 per common unit, totaling $281.364 million[139]. Assets and Liabilities - Cash and cash equivalents increased to $47.5 million as of June 30, 2024, from $45.3 million at the end of 2023[16]. - Total current assets rose to $183.6 million as of June 30, 2024, compared to $165.9 million at the end of 2023, reflecting a 10.7% increase[16]. - Total liabilities decreased to $655.8 million as of June 30, 2024, down from $672.5 million at the end of 2023, indicating a reduction of 2.5%[16]. - The Partnership's long-term debt remained stable at $547.6 million as of June 30, 2024, compared to $547.3 million at the end of 2023[46]. - As of June 30, 2024, total inventories increased to $80.6 million from $69.2 million as of December 31, 2023, reflecting a rise of 16.5%[36]. - The Partnership's total other current liabilities increased to $21.9 million as of June 30, 2024, compared to $20.9 million at the end of 2023, reflecting a rise of 4.9%[45]. Operational Highlights - The partnership operates two manufacturing facilities, producing nitrogen fertilizer products essential for crop yield improvement[26]. - Total product sales volumes for the three and six months ended June 30, 2024, were negatively impacted by a 14-day planned outage at the Coffeyville Facility and favorable weather conditions that shifted sales into the first quarter[100]. - The company’s ammonia utilization rate increased to 102% for the three months ended June 30, 2024, compared to 100% in the same period of 2023, indicating improved operational efficiency[94]. - The Coffeyville Facility is exploring the potential to utilize natural gas as an optional feedstock alongside pet coke, which could enhance production flexibility[87]. Market Conditions and Risks - The general business environment remains volatile, influenced by feedstock availability, product demand, and inflation, which could impact future financial results[72]. - The geopolitical risks from conflicts in the Middle East and the ongoing Russia-Ukraine war could disrupt global fertilizer and agriculture markets, impacting the company's operations and cash flows[76]. - The USDA estimates that farmers will plant 91.5 million corn acres in spring 2024, a decrease of 3.3% from 2023, while soybean acres are expected to increase by 3.0% to 86.1 million[80]. - Ammonia sales prices decreased by 26% for the three months and 32% for the six months ended June 30, 2024, compared to the same periods in 2023, primarily due to lower natural gas prices[100]. - The average sales prices for ammonia and UAN decreased by $245 and $122 per ton, respectively, for the six months ended June 30, 2024, attributed to lower natural gas prices and increased global supplies of nitrogen fertilizer[112]. Expenses and Costs - Direct operating expenses for the six months ended June 30, 2024, were $102.5 million, down from $113.3 million in the same period of 2023, primarily due to decreased utility costs[116]. - Selling, general, and administrative expenses decreased to $13.6 million for the six months ended June 30, 2024, from $14.7 million in the same period of 2023, primarily due to lower share-based compensation[119]. - Total share-based compensation expense for Q2 2024 was $675,000, a decrease of 69% from $2,203,000 in Q2 2023[10]. - For the six months ended June 30, 2024, total share-based compensation expense was $2,702,000, down 35% from $4,136,000 in the same period of 2023[10]. Compliance and Controls - The Partnership remains compliant with all covenants under its debt instruments as of June 30, 2024, ensuring financial stability[130]. - There were no material changes in market risks or internal controls over financial reporting as of June 30, 2024[145][147]. - The Partnership's disclosure controls and procedures were deemed effective as of June 30, 2024[146].

CVR Partners, LP Common Units (NYSE:UAN) Q2 2024 Earnings Conference Call July 30, 2024 11:00 AM ET Company Participants Richard Roberts - Vice President of FP&A and IR Mark Pytosh - President & CEO Dane Neumann - EVP, CFO, Treasurer & Assistant Secretary Conference Call Participants Robert McGuire - Granite Research Operator Greetings, and welcome to the CVR Partners Second Quarter 2024 Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session, will follo ...

2 | --- | |-----------------------------------| | | | | | Investor Relations | | Richard Roberts | | CVR Partners, LP | | (281) 207-3205 | | InvestorRelations@CVRPartners.com | | Media Relations | | Brandee Stephens | | CVR Partners, LP | | (281) 207-3516 | | MediaRelations@CVRPartners.com | Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented i ...

For further information, please contact: SUGAR LAND, Texas, June 25, 2024 (GLOBE NEWSWIRE) -- CVR Partners, LP (NYSE:UAN) today announced that 2023 Schedule K-3s, reflecting items of international tax relevance, are now available online. Unitholders may access the information at www.taxpackagesupport.com/cvrpartners. About CVR Partners, LP Investor Relations: Richard Roberts CVR Partners, LP (281) 207-3205 InvestorRelations@CVRPartners.com CVR Partners does not plan to mail Schedule K-3s to investors. To re ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-35120 CVR PARTNERS, LP (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Financial Data and Key Metrics Changes - For Q1 2024, the company reported net sales of $128 million, net income of $13 million, and EBITDA of $40 million, with a distribution of $1.92 per common unit declared [7][11][13] - Compared to Q1 2023, EBITDA declined primarily due to lower market prices for ammonia and UAN [11] Business Line Data and Key Metrics Changes - Ammonia plant utilization was 90%, affected by a 14-day planned outage at the Coffeyville facility [9] - Combined ammonia production was 193,000 gross tons, with 60,000 net tons available for sale, while UAN production reached 305,000 tons [9] - UAN sales volumes decreased due to lower production, with approximately 284,000 tons sold at an average price of $267 per ton, and 70,000 tons of ammonia sold at an average price of $528 per ton [9][10] Market Data and Key Metrics Changes - Ammonia prices fell by 41% and UAN prices by 42% compared to Q1 2023, although nitrogen fertilizer pricing remained steady compared to Q4 2023 [10] - Grain market conditions are volatile, with the USDA forecasting a 5% decrease in corn planting acres for 2024, while soybean acres are expected to increase by 3% [17][18] Company Strategy and Development Direction - The company is focusing on improving reliability and redundancy at its production facilities, with plans to begin capital spending on these projects in the second half of 2024 [22] - The potential to utilize natural gas as an alternative feedstock at the Coffeyville facility is being explored, which could enhance operational flexibility [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong nitrogen fertilizer demand for the spring 2024 planting season, driven by favorable weather conditions [16] - Geopolitical risks are acknowledged as a wildcard for the nitrogen fertilizer industry, particularly concerning energy and fertilizer markets [19][20] Other Important Information - The company ended the quarter with total liquidity of $108 million, including $65 million in cash [13] - The union strike at the East Dubuque facility ended in late February, allowing operations to resume [22] Q&A Session Summary Question: Changes in customer purchasing dynamics - Management noted that purchases have become more ratable, with lower prepay orders but higher cash purchasing in season [27][30] Question: Alternative feedstock potential at Coffeyville - Management confirmed no technical hurdles exist for utilizing natural gas, with minimal capital investment required for infrastructure [31][32] Question: Breakdown of current reserves for investing activities - Reserves are being set aside for future projects, with a focus on reliability and redundancy rather than adding new units [35][36] Question: Fluctuation in freight revenue - Freight revenue decreased due to lower UAN shipping volumes, but is expected to grow in the second quarter as production increases [38] Question: Outlook for Southern Plains demand - Management anticipates continued strength in demand due to recent storms bringing moisture, which is beneficial for planting [39]