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 ...

[CVR Partners Second Quarter 2024 Results](index=1&type=section&id=CVR%20Partners%20Reports%20Second%20Quarter%202024%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported lower Q2 2024 net income and EBITDA due to decreased fertilizer prices but maintained solid operational performance Key Financial Metrics | Financial Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Sales | $133 million | $183 million | | Net Income | $26 million | $60 million | | EBITDA | $54 million | $87 million | | Earnings per Unit | $2.48 | $5.66 | - Announced a second quarter 2024 cash distribution of **$1.90 per common unit**, payable on August 19, 2024, to unitholders of record as of August 12, 2024[17](index=17&type=chunk)[34](index=34&type=chunk) - CEO Mark Pytosh noted solid operating results driven by safe, reliable operations and a combined ammonia production rate of **102%**, despite weather interruptions[16](index=16&type=chunk) Average Realized Product Prices | Product | Q2 2024 Realized Price (per ton) | Q2 2023 Realized Price (per ton) | % Change | | :--- | :--- | :--- | :--- | | UAN | $268 | $316 | -15% | | Ammonia | $520 | $707 | -26% | - Production remained consistent year-over-year, with **221,000 tons of ammonia** produced in Q2 2024 compared to 219,000 tons in Q2 2023[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements reflect a year-over-year decline in revenue and profitability, with stable total assets and reduced cash flow from operations Consolidated Statements of Operations | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net Sales** | **$132,901** | **$183,005** | | Operating Income | $33,564 | $66,726 | | **Net Income** | **$26,219** | **$59,857** | | Basic and Diluted EPS | $2.48 | $5.66 | Consolidated Balance Sheets | (in thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $47,524 | $45,279 | | Total assets | $959,447 | $975,332 | | Total debt | $547,574 | $547,308 | | Total partners' capital | $303,628 | $302,880 | Consolidated Statements of Cash Flows | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash from Operating activities | $8,608 | $60,844 | | Net cash from Investing activities | ($5,413) | ($3,268) | | Net cash from Financing activities | ($20,293) | ($110,240) | | **Net (decrease) in cash** | **($17,098)** | **($52,664)** | [Operational Data & Key Metrics](index=6&type=section&id=Operational%20Data%20%26%20Key%20Metrics) Operational performance remained strong with a high ammonia utilization rate and stable production, though ammonia sales volumes decreased Ammonia Utilization Rate | Operating Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Ammonia Utilization | 102% | 100% | 96% | 103% | Production and Sales Volumes | Production/Sales (thousand tons) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Ammonia Sales Volume | 43 | 79 | | UAN Sales Volume | 330 | 329 | | Ammonia Production (gross) | 221 | 219 | | UAN Production | 337 | 339 | Average Feedstock Costs | Feedstock Cost | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Petroleum coke ($ per ton) | $62.96 | $73.91 | | Natural gas ($ per MMBtu) | $1.93 | $2.35 | Capital Expenditures | Capital Expenditures (in thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Maintenance | $4,831 | $5,691 | | Growth | $64 | $598 | | **Total** | **$4,895** | **$6,289** | [Q3 2024 Outlook](index=8&type=section&id=Q3%202024%20Outlook) The company anticipates strong nitrogen fertilizer demand and higher prices in Q3 2024, with ammonia utilization projected between 95% and 100% - The company has seen continued strong demand for nitrogen fertilizer for the remainder of 2024 at **prices higher than in 2023**[32](index=32&type=chunk) Q3 2024 Guidance | Q3 2024 Outlook | Low | High | | :--- | :--- | :--- | | Ammonia utilization rates | 95 % | 100 % | | Direct operating expenses (in millions) | $53 | $58 | | Capital expenditures (in millions) | $10 | $15 | [Non-GAAP Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Measures) The company utilizes non-GAAP measures like EBITDA to assess performance, providing reconciliations from GAAP net income - The company uses non-GAAP measures to help investors and analysts evaluate operating performance compared to peers in the fertilizer industry[3](index=3&type=chunk)[42](index=42&type=chunk) Reconciliation of Net Income to EBITDA and Available Cash | Reconciliation (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net income** | **$26,219** | **$59,857** | | Interest expense, net | $7,510 | $6,919 | | Depreciation and amortization | $20,040 | $19,755 | | **EBITDA** | **$53,769** | **$86,533** | | **Available Cash for Distribution** | **$20,113** | **$43,778** | [Corporate & Investor Information](index=2&type=section&id=Corporate%20%26%20Investor%20Information) This section details the company's business focus, investor communications, forward-looking statements, and tax notices for foreign investors - CVR Partners is a Delaware limited partnership focused on the production, marketing and distribution of nitrogen fertilizer products, primarily **urea ammonium nitrate (UAN) and ammonia**[23](index=23&type=chunk) - The company will host its second quarter 2024 Earnings Conference Call on **Tuesday, July 30, at 11 a.m. Eastern**[36](index=36&type=chunk)[20](index=20&type=chunk) - This release serves as a qualified notice that **100% of CVR Partners' distributions to foreign investors** are attributable to income effectively connected with a U.S. trade or business[21](index=21&type=chunk) - The news release contains **forward-looking statements** concerning estimates and projections about future results, performance, and events[22](index=22&type=chunk)

Company Overview - CVR Partners, LP is a Delaware limited partnership headquartered in Sugar Land, Texas, focused on the production, marketing, and distribution of nitrogen fertilizer products [5] - The company primarily produces urea ammonium nitrate (UAN) and ammonia, which are used by farmers to enhance crop yield and quality [5] Manufacturing Facilities - CVR Partners operates a nitrogen fertilizer manufacturing facility in Coffeyville, Kansas, which includes a 1,300 ton-per-day ammonia unit, a 3,100 ton-per-day UAN unit, and a dual-train gasifier complex with a capacity of 89 million standard cubic feet per day of hydrogen [5] - The company also has a facility in East Dubuque, Illinois, featuring a 1,075 ton-per-day ammonia unit and a 950 ton-per-day UAN unit [5] Tax Information - CVR Partners announced that the 2023 Schedule K-3s, which contain items of international tax relevance, are now available online for unitholders [1] - The company does not plan to mail Schedule K-3s to investors; instead, unitholders can request an electronic copy via email [3] - A limited number of investors, particularly foreign unitholders and those computing a foreign tax credit, may require the detailed information on the Schedule K-3 for their tax reporting needs [4]

[PART I. Financial Information](index=5&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Q1 2024 unaudited financial statements show significant declines in net sales and income, with stable assets and reduced operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $972.2 million, with minor shifts in cash, liabilities, and partners' capital Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $64,622 | $45,279 | | Total current assets | $182,469 | $165,869 | | Total assets | $972,215 | $975,332 | | **Liabilities & Partners' Capital** | | | | Total current liabilities | $79,528 | $75,473 | | Long-term debt, net | $547,440 | $547,308 | | Total liabilities | $674,513 | $672,452 | | Total partners' capital | $297,702 | $302,880 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 saw a sharp decline in performance, with net sales falling to $127.7 million and net income dropping significantly Consolidated Statements of Operations Highlights (in thousands, except per unit data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $127,665 | $226,261 | | Operating income | $20,059 | $109,352 | | Net income | $12,579 | $101,870 | | Basic and diluted EPS | $1.19 | $9.64 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly decreased to $42.4 million in Q1 2024, with shifts in investing and reduced financing cash outflow Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $42,417 | $130,443 | | Net cash (used in) provided by investing activities | $(5,317) | $15,562 | | Net cash used in financing activities | $(17,757) | $(110,981) | | Net increase in cash and cash equivalents | $19,343 | $35,024 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business operations, accounting policies, revenue disaggregation, debt, and Q1 2024 cash distributions Revenue by Major Product (in thousands) | Product | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Ammonia | $36,901 | $37,499 | | UAN | $75,771 | $164,341 | | Urea products | $5,142 | $8,170 | | **Total Revenue** | **$127,665** | **$226,261** | - The Partnership has **$550 million** in 6.125% Senior Secured Notes due June 2028. As of March 31, 2024, the company was in compliance with all debt covenants[49](index=49&type=chunk)[51](index=51&type=chunk) - A cash distribution of **$1.92 per common unit** for the first quarter of 2024 was declared on April 29, 2024, payable in May 2024. This totals approximately **$20.3 million**[62](index=62&type=chunk) - The Unit Repurchase Program, which had nominal authority remaining, was terminated by the Board on February 20, 2024. No units were repurchased in Q1 2024 or Q1 2023[30](index=30&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024's financial decline to lower sales prices and UAN volumes, while maintaining a positive long-term outlook [Industry Factors and Market Indicators](index=18&type=section&id=Industry%20Factors%20and%20Market%20Indicators) Nitrogen fertilizer markets are influenced by grain demand, feedstock costs, and geopolitical risks, with USDA projecting shifts in crop acres - The USDA estimates farmers will plant **90.0 million corn acres** in spring 2024 (down **4.9% YoY**) and **86.5 million soybean acres** (up **3.5% YoY**)[81](index=81&type=chunk) - Lower natural gas prices have led to a significant reduction in nitrogen fertilizer prices from their peaks. Pet coke prices have also declined into 2024[86](index=86&type=chunk) - Geopolitical risks from the conflicts in the Middle East and Ukraine could disrupt the production and trade of fertilizer, grains, and feedstock[77](index=77&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2024 operating income significantly declined to $20.1 million due to lower product pricing and reduced UAN sales volumes Product Pricing at Gate ($ per ton) | Product | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Ammonia | $519 | $879 | -41% | | UAN | $261 | $451 | -42% | Sales Volumes (thousands of tons) | Product | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Ammonia | 69 | 41 | | UAN | 256 | 332 | Feedstock Costs | Feedstock | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Petroleum coke ($ per ton) | $75.71 | $77.24 | | Natural gas ($ per MMBtu) | $3.10 | $5.76 | - Consolidated ammonia utilization decreased to **90%** in Q1 2024 from **105%** in Q1 2023, primarily due to a 14-day planned downtime at the Coffeyville Facility[93](index=93&type=chunk) [Non-GAAP Reconciliations](index=30&type=section&id=Non-GAAP%20Reconciliations) Non-GAAP measures show Q1 2024 EBITDA sharply decreased to $39.5 million, with Available Cash for Distribution at $20.3 million Reconciliation of Net Income to EBITDA (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $12,579 | $101,870 | | Interest expense, net | $7,665 | $7,173 | | Income tax (benefit) expense | $(25) | $44 | | Depreciation and amortization | $19,291 | $15,211 | | **EBITDA** | **$39,510** | **$124,298** | | **Available cash for distribution** | **$20,345** | **$110,293** | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, total liquidity was **$107.6 million**, with stable long-term debt and projected 2024 capital expenditures of **$46-49 million** - Total liquidity as of March 31, 2024, was **$107.6 million**, including **$64.6 million** in cash and **$43.0 million** in ABL Credit Facility availability[125](index=125&type=chunk) 2024 Capital Expenditure Outlook (in thousands) | Category | Estimated Full Year 2024 | | :--- | :--- | | Maintenance capital | $33,000 - $35,000 | | Growth capital | $13,000 - $14,000 | | **Total capital expenditures** | **$46,000 - $49,000** | - The next planned major turnarounds are scheduled for 2025 at the Coffeyville Facility and 2026 at the East Dubuque Facility[128](index=128&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risks were reported for Q1 2024 compared to the 2023 Annual Report on Form 10-K - There have been no material changes to market risks as of March 31, 2024, compared to those disclosed in the 2023 Form 10-K[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The Partnership's management concluded that disclosure controls and procedures were effective as of March 31, 2024[140](index=140&type=chunk) - No material changes occurred in the Partnership's internal control over financial reporting during the first quarter of 2024[141](index=141&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) Information on legal proceedings is incorporated by reference from Note 11 of the financial statements, with no new material disclosures - For information on legal proceedings, the report refers to Note 11 ("Commitments and Contingencies") in Part I, Item 1[143](index=143&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes from previously disclosed risk factors were reported in Q1 2024 compared to the 2023 Form 10-K - There have been no material changes from the risk factors previously disclosed in the 2023 Form 10-K[144](index=144&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2024 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[145](index=145&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the 2024 Performance-Based Bonus Plan, officer certifications, and XBRL data - Exhibits filed include the CVR Partners, LP and Subsidiaries 2024 Performance-Based Bonus Plan, certifications by principal officers (Rule 13a-14(a)/15d-14(a) and Section 1350), and Inline XBRL financial data[146](index=146&type=chunk)

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]

Exhibit 99.1 CVR Partners is a variable distribution master limited partnership. As a result, its distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, use of cash and cash reserves deemed necessary or appropriate by the Board. CVR Partners Reports First Quarter 2024 Results and Announces a Cash Distribution of $1.92 SUGAR LAND, ...

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, with natural gas being the primary raw material for production [287]. - The company has commitments to purchase natural gas at spot market prices and through various contracts, indicating a strategic approach to manage raw material costs [287]. - Fertilizer product inventory value is subject to market risk from fluctuations in commodity prices, which can be volatile and influenced by grain prices and demand [288]. - The company emphasizes that there are no financial instruments currently in place to effectively reduce commodity price risk associated with firm commitments and forecasted sales [288]. - The company faces risks related to the cyclical and highly volatile nature of the nitrogen fertilizer market, which could impact financial performance [32]. - The company is exposed to significant competition in the nitrogen fertilizer market, which could affect pricing and market share [32]. Financial Performance - Net sales for the year ended December 31, 2023, were $681.477 million, a decrease of 18.4% compared to $835.584 million in 2022 [308]. - Operating income for 2023 was $201.408 million, down 37% from $319.912 million in 2022 [308]. - Net income for 2023 was $172.433 million, a decline of 39.9% compared to $286.801 million in 2022 [308]. - Total assets as of December 31, 2023, were $975.332 million, down from $1,100.402 million in 2022, representing a decrease of 11.4% [305]. - Total current assets decreased to $165.869 million in 2023 from $265.704 million in 2022, a decline of 37.5% [305]. - Total partners' capital decreased to $302.880 million in 2023 from $411.811 million in 2022, a reduction of 26.4% [305]. - Basic and diluted earnings per common unit for 2023 were $16.31, down from $27.07 in 2022, a decrease of 39.9% [308]. - Cash and cash equivalents decreased to $45.279 million in 2023 from $86.339 million in 2022, a decline of 47.7% [305]. - Net income for the year ended December 31, 2023, was $172,433,000, a decrease of 40% compared to $286,801,000 in 2022 [314]. - Net cash provided by operating activities decreased to $243,526,000 in 2023 from $301,464,000 in 2022, reflecting a decline of 19% [314]. - Capital expenditures for 2023 were $24,196,000, significantly lower than $44,668,000 in 2022, indicating a reduction of 46% [314]. Cash Distributions and Related Party Transactions - Cash distributions to common unitholders – Affiliates increased to $103,605,000 in 2023 from $75,193,000 in 2022, representing a rise of 38% [314]. - Cash distributions to common unitholders – Non-affiliates also rose to $177,759,000 in 2023 from $129,597,000 in 2022, an increase of 37% [314]. - The total quarterly distributions paid in 2023 amounted to $281,364,000, with $177,759,000 paid to public unitholders and $103,605,000 to CVR Energy [430]. - The Partnership declared a distribution of $1.68 per common unit for the fourth quarter of 2023, totaling approximately $17.8 million, payable on March 11, 2024 [433]. - For the year ended December 31, 2023, sales to related parties from CVR Energy subsidiary amounted to $4,000, while expenses from related parties totaled $21,336,000 [426]. - The Partnership's related party activity includes sales of feedstocks and services under the Coffeyville MSA, with total sales to related parties reaching $3,617,000 in 2023 [426]. Operational Risks and Stability - The company is reliant on third-party suppliers for essential raw materials, which poses a risk to operational stability [32]. - The company’s operations are geographically concentrated, making it vulnerable to regional economic downturns and seasonal variations [32]. - The company’s ability to generate distributable cash is contingent on market conditions and operational performance, which are subject to various risks [23]. - The company’s financial results may be adversely impacted by changes in environmental laws and regulations, as well as compliance costs [32]. Asset Management and Liabilities - Long-term debt remained relatively stable at $547.308 million in 2023 compared to $546.800 million in 2022 [305]. - The Partnership's cash and cash equivalents at the end of the period were $45,279,000, down from $86,339,000 at the end of 2022, a decrease of 48% [314]. - Total deferred revenue at December 31, 2023 was $49.1 million, with a current portion of $15.8 million and long-term deferred revenue of $33.3 million [400]. - The minimum required payments for unconditional purchase obligations total $57.4 million, with $3.7 million due in 2024 [416]. Joint Ventures and New Initiatives - The Partnership entered into a joint venture for carbon capture and sequestration activities, expected to generate Section 45Q Credits from January 6, 2023, until March 31, 2030 [321]. - The Partnership received a $2.2 million distribution from CVRP JV due to exceeding carbon oxide capture and sequestration milestones in 2023, to be recognized in Q1 2024 [371]. Accounting and Reporting - The Partnership maintained effective internal control over financial reporting as of December 31, 2023, according to the audit opinion [298]. - The Partnership is evaluating the impact of new accounting standards effective in 2024 and 2025 but does not expect a material impact on consolidated financial statements [358][359]. - The Partnership's revenue recognition is based on contracts with customers, with performance obligations satisfied upon delivery of products [344].

Financial Data and Key Metrics Changes - For Q4 2023, the company reported net sales of $142 million, net income of $10 million, and EBITDA of $38 million, with a distribution of $1.68 per common unit declared [6][10][14] - Full year 2023 results included net sales of $681 million, net income of $172 million, and EBITDA of $281 million, with distributions totaling $17.80 per common unit [12][14][28] Business Line Data and Key Metrics Changes - In Q4 2023, UAN production was 306,000 tons, and ammonia production was 205,000 gross tons, with sales volumes of approximately 320,000 tons of UAN and 98,000 tons of ammonia [13] - The average price for UAN was $241 per ton, and for ammonia, it was $461 per ton, reflecting a decline of approximately 47% and 52% respectively compared to the prior year [8][13] Market Data and Key Metrics Changes - Grain market conditions have softened, with USDA estimating a 4% decrease in corn planting to 91 million acres and a 5% increase in soybean planting to 88 million acres for 2024 [18] - Current grain prices are lower, with May corn at $4.30 per bushel and soybeans at nearly $11.90 per bushel, supporting attractive farmer economics for nitrogen fertilizer demand [19] Company Strategy and Development Direction - The company is considering a dual feed system at the Coffeyville facility to utilize both natural gas and pet coke, aiming for a decision in 2024 [24][33] - The focus remains on improving reliability and redundancy at production facilities, with capital reserved for targeted capacity increases [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong nitrogen fertilizer demand for the spring 2024 planting season, despite recent softening in grain market conditions [11][20] - Geopolitical risks and natural gas price fluctuations in Europe are noted as potential volatility factors for the nitrogen fertilizer industry [21][22] Other Important Information - The company achieved a 94% ammonia utilization rate for Q4 2023, with ongoing operations at the East Dubuque facility despite a union strike [25][27] - Capital spending for Q4 2023 was $11 million, with full year spending at $29 million, and estimates for 2024 maintenance capital spending between $32 million and $35 million [15] Q&A Session Summary Question: Timing and costs for dual fuel project at Coffeyville - Management aims to make a decision in 2024, with capital costs expected to be manageable and potentially funded from existing reserves [31][32] Question: Inventory levels in the channel - Inventory levels are lower than historical averages, with customers adopting a more ratable buying pattern due to high capital costs [38][40] Question: Ammonia utilization at Coffeyville - A catalyst change is being performed, which is expected to temporarily lower utilization rates but will return to full production thereafter [41]