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CVR Partners Reports First Quarter 2025 Results
Globenewswire· 2025-04-28 21:05
Core Insights - CVR Partners reported a net income of $27 million, or $2.56 per common unit, for Q1 2025, a significant increase from $13 million, or $1.19 per common unit, in Q1 2024 [1][9] - The company achieved an EBITDA of $53 million on net sales of $143 million in Q1 2025, compared to an EBITDA of $40 million on net sales of $128 million in Q1 2024 [1][19] - The average realized gate prices for ammonia increased by 5% to $554 per ton, while UAN prices decreased by 4% to $256 per ton compared to the previous year [4][32] Financial Performance - Net sales for Q1 2025 were $142.87 million, up from $127.67 million in Q1 2024 [19] - Operating income rose to $34.59 million in Q1 2025 from $20.06 million in Q1 2024 [19] - The company declared a cash distribution of $2.26 per common unit for Q1 2025, payable on May 19, 2025 [5][9] Production and Operations - CVR Partners produced a total of 216,000 tons of ammonia in Q1 2025, an increase from 193,000 tons in Q1 2024 [3][27] - The ammonia utilization rate reached 101% in Q1 2025, compared to 90% in Q1 2024 [26] - The company upgraded a significant portion of its ammonia production into other fertilizer products, producing 348,000 tons of UAN in Q1 2025, up from 305,000 tons in Q1 2024 [3][27] Market Conditions - The supply and demand for nitrogen fertilizer products remain tight, contributing to rising prices as the spring planting season approaches [2] - The average prices for ammonia and UAN in key markets showed mixed trends, with ammonia prices in the Southern Plains at $562 per ton and UAN prices in the Corn Belt at $324 per ton [29][32] Cash Flow and Capital Expenditures - Net cash flow from operating activities was $55.39 million in Q1 2025, compared to $42.42 million in Q1 2024 [25] - Total capital expenditures for Q1 2025 were $5.93 million, up from $4.61 million in Q1 2024 [26] - Available cash for distribution was reported at $23.93 million for Q1 2025, compared to $20.35 million for Q1 2024 [35]
CVR Partners to Release First Quarter 2025 Earnings Results
Globenewswire· 2025-04-15 12:30
Core Viewpoint - CVR Partners, LP is set to release its first quarter 2025 earnings results on April 28, 2025, after market close, followed by a teleconference on April 29, 2025, to discuss these results [1][2]. 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 enhancing crop yield and quality [4]. - The manufacturing facility in Coffeyville, Kansas, has a capacity of 1,300 tons per day for ammonia and 3,100 tons per day for UAN, along with a dual-train 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].
CVR Partners(UAN) - 2024 Q4 - Earnings Call Transcript
2025-02-19 21:47
Financial Data and Key Metrics Changes - For Q4 2024, the company reported net sales of $140 million, net income of $18 million, and EBITDA of $50 million [8] - Full year 2024 results included net sales of $525 million, operating income of $90 million, net income of $61 million, and EBITDA of $179 million [14] - The fourth quarter distribution was declared at $1.75 per common unit, with full year distributions totaling $6.76 per common unit [9][14] Business Line Data and Key Metrics Changes - Ammonia utilization rate for the year was 96%, with a record 102% at East Dubuque [9][10] - Total ammonia production for Q4 2024 was 210,000 gross tons, with 80,000 net tons available for sale [11] - UAN production reached 310,000 tons, sold at an average price of $229 per ton, while ammonia was sold at an average price of $475 per ton [11] Market Data and Key Metrics Changes - Ammonia sales volumes were stable, while UAN sales volumes decreased by approximately 3% due to challenging weather conditions [12] - Prices for ammonia increased by approximately 3%, while UAN prices declined by about 5% compared to Q4 2023 [12] - The market for nitrogen fertilizer products is tight, with strong demand anticipated for the spring planting season [13] Company Strategy and Development Direction - The company is focused on improving reliability and redundancy at its plants, with capital reserved for projects over the next two to three years [29] - Plans to utilize natural gas as an alternative feedstock to pet coke are underway, which could enhance operational flexibility [25][26] - The company aims to operate plants at utilization rates above 95% of nameplate capacity, excluding turnaround impacts [27] Management Comments on Operating Environment and Future Outlook - Management noted that geopolitical risks could impact the nitrogen fertilizer industry, particularly regarding energy and fertilizer markets [22] - The USDA estimates record high corn yields, which may drive demand for nitrogen fertilizer [19] - The company expects continued volatility in the market and is monitoring potential tariffs on foreign fertilizer imports [23] Other Important Information - The company reported a 40% reduction in total recordable incident rate compared to 2023, indicating improved safety metrics [10] - Total liquidity at the end of the quarter was $130 million, consisting of $91 million in cash and $39 million available under the ABL facility [17] Q&A Session Summary Question: Changes in customer ordering patterns due to Fed rate changes - Management indicated no significant change in customer ordering patterns, with continued ratable buying observed [33] Question: Timing of the Coffeyville project - The dual fuel project is expected to be approved and potentially executed in 2026, with construction starting this year if approved [39][40] Question: Impact of UAN demand due to higher urea prices - Management noted that tight urea supply has lifted both UAN and ammonia prices, with expectations of increased corn acreage leading to higher demand for nitrogen fertilizers [52][54] Question: Trends towards UAN versus ammonia usage - There is no significant trend towards UAN over ammonia; pricing dynamics will influence customer choices [58] Question: UAN presales for Q1 and Q2 2025 - Management confirmed a solid book of business for UAN and ammonia, with customers seeking more than what is available [61] Question: CapEx outlook for the year - Management expects no substantial change in reserves for CapEx, maintaining a comparable level for growth projects [65]
CVR Partners Files Form 10-K Annual Report For Fiscal Year Ended December 31, 2024
Globenewswire· 2025-02-19 21:40
Core Insights - CVR Partners, LP has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024, with the SEC [1] - The annual report includes complete audited financial statements and is available for free on the company's website [2] Company Overview - CVR Partners, LP is headquartered in Sugar Land, Texas, and is a Delaware limited partnership focused on nitrogen fertilizer production, marketing, and distribution [2] - The company primarily produces urea ammonium nitrate (UAN) and ammonia, which are essential for improving crop yield and quality [2] - 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 [2] - The East Dubuque, Illinois facility has a production capacity of 1,075 tons per day for ammonia and 950 tons per day for UAN [2]
CVR Partners(UAN) - 2024 Q4 - Annual Report
2025-02-19 21:21
Market Risk and Commodity Prices - The company reported a significant exposure to market risk due to potential changes in prices for fertilizer products, pet coke, and natural gas, which are critical raw materials for production [291]. - A $1.00 per MMBtu change in the price of natural gas would affect the cost to produce a ton of ammonia and UAN by approximately $14.29 and $5.86, respectively [293]. - A $1.00 per ton change in the price of pet coke would change the cost to produce a ton of ammonia and UAN by approximately $0.66 and $0.27, respectively [293]. - The company is exposed to risks from changes in market conditions, including fluctuations in fertilizer, natural gas, and other commodity prices, which can impact operating results [22]. - The company’s ability to generate distributable cash or make cash distributions on common units is influenced by market volatility and commodity prices [22]. - The company acknowledges the potential impact of climate change and environmental regulations on demand for its products, which could affect future growth [27]. Financial Performance - Net sales for the year ended December 31, 2024, were $525.3 million, a decrease of 22.9% compared to $681.5 million in 2023 [314]. - Operating income for 2024 was $90.4 million, down 55.1% from $201.4 million in 2023 [314]. - The company reported a net income of $60.9 million for 2024, a decline of 64.7% from $172.4 million in 2023 [314]. - Basic and diluted earnings per common unit decreased to $5.76 in 2024 from $16.31 in 2023, representing a decline of 64.7% [314]. - Net income for the year ended December 31, 2024, was $60.9 million, a decrease of 64.7% compared to $172.4 million in 2023 [320]. - Total revenue for the year ended December 31, 2024, was $525.3 million, a decrease of 22.9% from $681.5 million in 2023 [400]. - Revenue from ammonia products was $130.0 million in 2024, down 19.5% from $161.0 million in 2023 [400]. - UAN revenue decreased by 27.7% to $312.0 million in 2024 from $431.5 million in 2023 [400]. Assets and Liabilities - As of December 31, 2024, total assets increased to $1,018.7 million from $975.3 million in 2023, reflecting a growth of approximately 4.4% [311]. - Total current liabilities rose to $111.3 million in 2024, compared to $75.5 million in 2023, marking an increase of 47.5% [311]. - Long-term debt and finance lease obligations increased to $568.0 million in 2024 from $547.3 million in 2023, reflecting a rise of 3.8% [311]. - The total long-term debt and finance lease obligations, including the current portion, was $568.9 million as of December 31, 2024, compared to $547.3 million in 2023 [388]. - The Partnership recognized total other current liabilities of $24.0 million as of December 31, 2024, up from $20.9 million in 2023 [386]. Cash Flow and Distributions - Cash and cash equivalents increased to $90.9 million in 2024, up from $45.3 million in 2023, indicating a growth of 100.5% [311]. - Net cash provided by operating activities was $150.5 million, down 38.2% from $243.5 million in 2023 [320]. - Cash distributions to common unitholders (affiliates) were $26.0 million, a decrease of 74.9% from $103.6 million in 2023 [320]. - The total quarterly distributions paid in 2024 reached $70,710,000, with an average distribution per common unit of $6.69 [436]. - For the fourth quarter of 2024, the Partnership declared a distribution of $1.75 per common unit, totaling $18.5 million, payable to unitholders [438]. Operational and Market Conditions - The company’s operations are subject to the volatile, cyclical, and seasonal nature of the nitrogen fertilizer market, which can impact financial performance [22]. - The company faces risks related to the dependence on a few third-party suppliers for feedstocks and transportation services, which could affect operational stability [22]. - The company’s production levels and pricing are subject to significant competition in the nitrogen fertilizer business, which can affect market share and profitability [22]. - The Partnership's nitrogen fertilizer products are primarily sold on a wholesale basis in the United States [323]. Capital Expenditures and Investments - Capital expenditures for 2024 totaled $37.1 million, an increase from $24.2 million in 2023 [320]. - The Partnership incurred capitalized interest of $1.0 million in 2024, compared to $0.5 million in 2023, showing an increase in financing costs associated with capital projects [369]. - The Partnership's total unconditional purchase obligations amount to $57.5 million, with $3.9 million due in each of the next five years [417]. Compliance and Governance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the auditor's opinion [304]. - The Partnership's compliance with all covenants under debt instruments was confirmed as of December 31, 2024 [399]. - The Board's distribution policy allows for quarterly distributions based on available cash, subject to change at the Board's discretion [435].
CVR Partners(UAN) - 2024 Q4 - Annual Results
2025-02-18 22:05
Financial Performance - For Q4 2024, CVR Partners reported net income of $18 million, or $1.73 per common unit, and EBITDA of $50 million on net sales of $140 million, compared to net income of $10 million, or $0.94 per common unit, and EBITDA of $38 million on net sales of $142 million in Q4 2023[2][3]. - For the full year 2024, net income was $61 million, or $5.76 per common unit, with EBITDA of $179 million on net sales of $525 million, down from net income of $172 million, or $16.31 per common unit, and EBITDA of $281 million on net sales of $681 million in 2023[3][9]. - Total net sales for the year ended December 31, 2024, were $525,324,000, a decrease of 22.9% compared to $681,477,000 in 2023[26]. - Fertilizer sales for the three months ended December 31, 2024, were $125,818,000, down from $127,663,000 in the same period of 2023, representing a decline of 1.3%[26]. - Net income for the year ended December 31, 2024, was $60,900,000, a decrease of 64.7% compared to $172,433,000 in 2023[37]. - Available cash for distribution for the year ended December 31, 2024, was $71,511,000, down from $188,193,000 in 2023, a decline of 62%[40]. Production and Utilization - CVR Partners achieved a combined ammonia production rate of 96% for the full year 2024, producing 836,000 tons of ammonia, with 270,000 net tons available for sale[9][8]. - In Q4 2024, CVR Partners produced 210,000 tons of ammonia, with 80,000 net tons available for sale, compared to 205,000 tons produced in Q4 2023[6][4]. - The ammonia utilization rate for the year ended December 31, 2024, was 96%, slightly down from 100% in 2023[31]. - The company expects ammonia utilization rates for Q1 2025 to range between 95% and 100%[36]. Pricing and Market Conditions - The average realized gate price for UAN decreased by 20% to $248 per ton in 2024, while ammonia prices fell by 16% to $479 per ton compared to 2023[9]. - The average price of ammonia in the Southern plains decreased to $526 per ton in Q4 2024, down from $648 per ton in Q4 2023, a decline of 18.8%[34]. - The company noted strong nitrogen fertilizer demand in Q4 2024, despite challenging weather conditions, with higher prices compared to Q3 2024[4][5]. Cash Flow and Expenditures - Cash and cash equivalents increased to $90,857,000 as of December 31, 2024, compared to $45,279,000 in 2023, reflecting a growth of 100.7%[27]. - Operating activities generated net cash flows of $12,791,000 for the three months ended December 31, 2024, compared to a cash outflow of $17,863,000 in 2023[28]. - Total capital expenditures for the year ended December 31, 2024, were $37,063,000, an increase of 27.5% from $29,081,000 in 2023[29]. Distributions - The company declared a Q4 2024 cash distribution of $1.75 per common unit, totaling $6.76 per common unit for the year[10][9]. - The board of directors declared a cash distribution to be paid on March 10, 2025, to common unitholders of record as of March 3, 2025[10][9].
CVR Partners Reports Fourth Quarter and Full-Year 2024 Results
Globenewswire· 2025-02-18 21:58
Core Insights - CVR Partners reported a net income of $18 million, or $1.73 per common unit, for Q4 2024, an increase from $10 million, or 94 cents per common unit, in Q4 2023 [1] - For the full year 2024, net income was $61 million, or $5.76 per common unit, down from $172 million, or $16.31 per common unit, in 2023 [2] - The company achieved an EBITDA of $50 million on net sales of $140 million for Q4 2024, compared to an EBITDA of $38 million on net sales of $142 million in Q4 2023 [1][2] Financial Performance - Q4 2024 net sales were $140 million, slightly down from $142 million in Q4 2023 [1] - Full-year 2024 net sales totaled $525 million, a decrease from $681 million in 2023 [2] - EBITDA for full-year 2024 was $179 million, down from $281 million in 2023 [2] Operational Highlights - The ammonia production rate for 2024 was 96%, consistent with the previous year [3][11] - In Q4 2024, the company produced 210,000 tons of ammonia, with 80,000 tons available for sale, compared to 205,000 tons produced in Q4 2023, with 75,000 tons available for sale [5][6] - For the full year 2024, total ammonia production was 836,000 tons, slightly down from 864,000 tons in 2023 [7] Pricing and Market Conditions - Average realized gate prices for UAN decreased by 5% to $229 per ton in Q4 2024, while ammonia prices increased by 3% to $475 per ton [6] - For the full year 2024, UAN prices fell by 20% to $248 per ton, and ammonia prices decreased by 16% to $479 per ton compared to 2023 [8] - The CEO noted that despite challenging weather conditions, nitrogen fertilizer demand remained strong in Q4 2024, with favorable market conditions expected for the spring planting season [3][4] Distributions - The board declared a cash distribution of $1.75 per common unit for Q4 2024, to be paid on March 10, 2025 [4][9] - Cumulative cash distributions for 2024 reached $6.76 per common unit [11]
CVR Partners to Release Fourth Quarter and Full-Year 2024 Earnings Results
Globenewswire· 2025-02-04 13:30
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]
CVR Partners(UAN) - 2024 Q3 - Quarterly Report
2024-10-29 20:27
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].
CVR Partners(UAN) - 2024 Q3 - Earnings Call Transcript
2024-10-29 17:55
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]