CVR Partners(UAN)

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CVR Partners(UAN) - 2023 Q4 - Annual Results
2024-02-20 22:15
[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) CVR Partners experienced a significant decline in 2023 financial results due to lower fertilizer prices, yet maintained strong operational reliability and strengthened its capital structure [Fourth Quarter & Full-Year 2023 Financial Performance](index=1&type=section&id=Fourth%20Quarter%20%26%20Full-Year%202023%20Financial%20Performance) CVR Partners reported a significant year-over-year decline in financial performance for both the fourth quarter and full-year 2023. Net income, net sales, and EBITDA all decreased substantially compared to 2022, primarily driven by lower average realized prices for its fertilizer products Q4 2023 vs Q4 2022 Financial Results (in millions) | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $142 | $212 | -33.0% | | Net Income | $10 | $95 | -89.5% | | Earnings per Unit | $0.94 | $9.02 | -89.6% | | EBITDA | $38 | $122 | -68.7% | Full-Year 2023 vs Full-Year 2022 Financial Results (in millions) | Metric | Full-Year 2023 | Full-Year 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $681 | $836 | -18.6% | | Net Income | $172 | $287 | -40.1% | | Earnings per Unit | $16.31 | $27.07 | -39.7% | | EBITDA | $281 | $403 | -30.3% | [Operational Performance & Market Commentary](index=1&type=section&id=Operational%20Performance%20%26%20Market%20Commentary) Despite weaker pricing, the company achieved excellent operational reliability with a 100% combined ammonia utilization rate for the full year. Management observed strong fall ammonia demand and anticipates continued strength into the spring planting season, supported by favorable farmer economics - Achieved a combined ammonia production utilization rate of **100%** for the full-year 2023, indicating safe and reliable operations[4](index=4&type=chunk)[8](index=8&type=chunk) - The CEO noted that fall application ammonia demand was one of the strongest in recent years and expects strong nitrogen fertilizer demand for the upcoming spring planting season[4](index=4&type=chunk)[5](index=5&type=chunk) Year-over-Year Average Realized Gate Price Changes | Product | Q4 2023 vs Q4 2022 | FY 2023 vs FY 2022 | | :--- | :--- | :--- | | UAN | -47% | -36% | | Ammonia | -52% | -44% | [Distributions and Capital Structure](index=2&type=section&id=Distributions%20and%20Capital%20Structure) The Partnership declared a fourth-quarter 2023 cash distribution of $1.68 per common unit, bringing the cumulative total for 2023 to $17.80 per unit. Additionally, the company strengthened its liquidity by amending its ABL Credit Facility, increasing its capacity to $50 million and extending the maturity to 2028 - Declared a Q4 2023 cash distribution of **$1.68 per common unit**, payable on March 11, 2024. The cumulative cash distributions declared for 2023 totaled **$17.80 per common unit**[8](index=8&type=chunk)[10](index=10&type=chunk) - Amended the ABL Credit Facility to increase the aggregate principal amount by **$15.0 million** to a total of **$50.0 million** and extended the maturity date by four years to **September 26, 2028**[9](index=9&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) The company's detailed financial statements for 2023 reflect a decline in net sales and income, alongside reduced capital expenditures and a strengthened liquidity position [Consolidated Statement of Operations](index=5&type=section&id=Consolidated%20Statement%20of%20Operations) For the full year 2023, net sales decreased to $681.5 million from $835.6 million in 2022. Despite lower cost of sales, operating income fell to $201.4 million from $319.9 million. Consequently, net income for 2023 was $172.4 million, or $16.31 per unit, compared to $286.8 million, or $27.07 per unit, in the prior year Full-Year Statement of Operations (in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Net sales | $681,477 | $835,584 | | Cost of sales | $449,013 | $483,217 | | Operating income | $201,408 | $319,912 | | Net income | $172,433 | $286,801 | | Basic and diluted EPS | $16.31 | $27.07 | - Fertilizer sales constituted the vast majority of net sales, totaling **$621.2 million** for the full year 2023, down from **$789.5 million** in 2022[29](index=29&type=chunk) [Selected Balance Sheet & Cash Flow Data](index=6&type=section&id=Selected%20Balance%20Sheet%20%26%20Cash%20Flow%20Data) As of December 31, 2023, the company's balance sheet showed total assets of $975.3 million and total debt of $547.3 million. Cash and cash equivalents stood at $45.3 million, a decrease from $86.3 million at year-end 2022. For the full year 2023, net cash provided by operating activities was $243.5 million, while financing activities used $281.9 million, primarily for distributions Selected Balance Sheet Data (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $45,279 | $86,339 | | Total assets | $975,332 | $1,100,402 | | Total debt | $547,308 | $546,800 | | Total partners' capital | $302,880 | $411,811 | Full-Year Selected Cash Flow Data (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Operating activities | $243,526 | $301,464 | | Investing activities | $(2,722) | $(44,623) | | Financing activities | $(281,864) | $(283,018) | [Capital Expenditures](index=6&type=section&id=Capital%20Expenditures) Total capital expenditures for the full year 2023 were $29.1 million, a significant decrease from $41.4 million in 2022. The reduction was driven by lower maintenance spending, which fell to $28.0 million in 2023 from $40.8 million in 2022. The next planned turnarounds are scheduled for 2025 and 2026 Full-Year Capital Expenditures (in thousands) | Type | 2023 | 2022 | | :--- | :--- | :--- | | Maintenance | $28,025 | $40,793 | | Growth | $1,056 | $653 | | **Total** | **$29,081** | **$41,446** | - The next planned major turnarounds are scheduled for **2025** at the Coffeyville Facility and **2026** at the East Dubuque Facility[25](index=25&type=chunk) [Operational Metrics and Market Indicators](index=6&type=section&id=Operational%20Metrics%20and%20Market%20Indicators) Operational metrics for 2023 show increased production volumes and improved utilization rates, despite a significant decline in average realized product prices and natural gas costs [Production and Sales Data](index=7&type=section&id=Production%20and%20Sales%20Data) For the full year 2023, gross ammonia production increased to 864,000 tons from 703,000 tons in 2022, and UAN production rose to 1,369,000 tons from 1,140,000 tons. Despite higher volumes, average realized prices fell sharply: ammonia dropped to $573/ton from $1,024/ton, and UAN fell to $309/ton from $486/ton. Natural gas feedstock costs also decreased significantly year-over-year Full-Year Production Volume (thousands of tons) | Product | 2023 | 2022 | | :--- | :--- | :--- | | Ammonia (gross produced) | 864 | 703 | | UAN | 1,369 | 1,140 | Full-Year Product Pricing and Feedstock Cost | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Ammonia Price ($/ton) | $573 | $1,024 | | UAN Price ($/ton) | $309 | $486 | | Natural Gas Cost ($/MMBtu) | $3.42 | $6.66 | [Key Operating & Market Indicators](index=6&type=section&id=Key%20Operating%20%26%20Market%20Indicators) Operational efficiency improved markedly in 2023, with the consolidated ammonia utilization rate reaching 100% for the full year, up from 81% in 2022. This reflects enhanced plant reliability. Market prices for key products saw a significant downturn, with Corn Belt UAN prices averaging $308/ton in 2023 compared to $580/ton in 2022, and NYMEX natural gas prices falling to an average of $2.67/MMBtu from $6.54/MMBtu Consolidated Ammonia Utilization Rate | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q4 | 94% | 96% | | Full Year | 100% | 81% | Full-Year Key Market Indicators | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | UAN — Corn belt ($/ton) | $308 | $580 | | Natural gas NYMEX ($/MMBtu) | $2.67 | $6.54 | [Forward-Looking Information & Other Disclosures](index=2&type=section&id=Forward-Looking%20Information%20%26%20Other%20Disclosures) The company provides Q1 2024 guidance, details its use of non-GAAP financial measures, and addresses shareholder information regarding distributions and tax packages [Q1 2024 Outlook](index=8&type=section&id=Q1%202024%20Outlook) For the first quarter of 2024, CVR Partners anticipates a consolidated ammonia utilization rate between 86% and 91%. Direct operating expenses are projected to be in the range of $52 million to $57 million, while total capital expenditures are expected to be between $9 million and $13 million Q1 2024 Guidance | Metric | Low | High | | :--- | :--- | :--- | | Consolidated Ammonia Utilization | 86% | 91% | | Direct Operating Expenses | $52 million | $57 million | | Total Capital Expenditures | $9 million | $13 million | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company utilizes non-GAAP metrics such as EBITDA and Available Cash for Distribution to assess performance. For the full year 2023, EBITDA was $281.1 million and Available Cash for Distribution was $188.2 million. These figures represent a decline from 2022 levels of $403.2 million and $259.7 million, respectively. The report provides a detailed reconciliation from GAAP Net Income to these non-GAAP measures - Management uses non-GAAP measures including **EBITDA**, **Adjusted EBITDA**, and **Available Cash for Distribution** to supplement GAAP financial information for performance evaluation[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) Reconciliation of Net Income to EBITDA (Full Year, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Net income | $172,433 | $286,801 | | Interest expense, net | $28,653 | $34,065 | | Income tax expense | $289 | $160 | | Depreciation and amortization | $79,720 | $82,137 | | **EBITDA** | **$281,095** | **$403,163** | [Shareholder Information](index=2&type=section&id=Shareholder%20Information) The company announced its Q4 and full-year 2023 earnings call for February 21, 2024. A qualified notice was issued, stating that 100% of distributions to foreign investors are subject to U.S. federal income tax withholding. Additionally, the release of 2023 K-1 tax packages may be delayed pending the outcome of proposed H.R. 7024 tax legislation - The company hosted its Q4 and full-year 2023 earnings conference call on **February 21, 2024**[12](index=12&type=chunk) - A qualified notice was provided to nominees and brokers, indicating that distributions to foreign investors are subject to federal income tax withholding at the **highest effective rate**[14](index=14&type=chunk) - The availability of 2023 K-1 tax packages is contingent on the U.S. Congress's actions regarding the proposed **H.R. 7024 legislation**, which could retroactively lower the Partnership's 2023 taxable income[15](index=15&type=chunk)
CVR Partners(UAN) - 2023 Q3 - Earnings Call Transcript
2023-10-31 20:42
Financial Data and Key Metrics Changes - For Q3 2023, the company reported net sales of $131 million, net income of $1 million, and EBITDA of $32 million, with a distribution of $1.55 per common unit declared [32][34][36] - Compared to Q3 2022, EBITDA increased primarily due to higher production and sales volumes, and lower operating expenses, despite ammonia prices falling 56% and UAN prices falling 48% [33][34] Business Line Data and Key Metrics Changes - UAN production for Q3 2023 was 358,000 tons, with sales of approximately 387,000 tons at an average price of $223 per ton, and 62,000 tons of ammonia sold at an average price of $365 per ton [5][34] - Direct operating expenses for Q3 2023 were $58 million, a decrease of approximately $38 million compared to Q3 2022, driven by lower turnaround and maintenance expenses [7] Market Data and Key Metrics Changes - The nitrogen fertilizer market saw a price reset in July, with prices firming due to strong demand and reduced supply from outages [13][20] - Current USDA estimates indicate 95 million acres of corn were planted in spring 2023, a 7% increase from 2022, supporting favorable conditions for nitrogen fertilizer demand [40] Company Strategy and Development Direction - The company is focusing on reliability and performance, with plans for decarbonization efforts including the installation of a nitrous oxide abatement unit expected to be completed by 2025 [22][24] - The company is exploring CO2 sequestration opportunities and evaluating brownfield development projects for potential capacity increases [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about nitrogen fertilizer demand for 2024, citing steady grain prices and favorable farmer economics [41][39] - Geopolitical risks and natural gas price fluctuations in Europe are noted as potential challenges for the nitrogen fertilizer industry [21] Other Important Information - The company amended its ABL credit facility to increase maximum availability from $35 million to $50 million, extending maturity to 2028 [35] - Total liquidity at the end of the quarter was $137 million, including $89 million in cash [35] Q&A Session Summary Question: Impact of the strike at East Dubuque on utilization - Management indicated that the strike would not disrupt operations or utilization, as they are fully manned and expect to run continuously [49] Question: Customer purchasing patterns - Management noted that customers are purchasing more ratably and not carrying inventory for long periods, which aligns with their production schedule [50][51] Question: Fourth quarter production and sales - Management refrained from providing specific sales figures but indicated a significant increase in ammonia and UAN sales since July [52] Question: Maintenance CapEx reserves - The buildup in reserves is due to ongoing reliability and expansion projects, with future reserves depending on project outcomes [53][60] Question: Russian imports of UAN - Management stated that the flow of Russian UAN has normalized since mid-2022, with no significant changes impacting the market [61]
CVR Partners(UAN) - 2023 Q3 - Quarterly Report
2023-10-31 20:17
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 September 30, 2023 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 jurisdict ...
CVR Partners(UAN) - 2023 Q2 - Quarterly Report
2023-08-01 20:25
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 June 30, 2023 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 o ...
CVR Partners(UAN) - 2023 Q2 - Earnings Call Transcript
2023-08-01 18:27
CVR Partners, LP (NYSE:UAN) Q2 2023 Earnings Conference Call August 1, 2023 11:00 AM ET Company Participants Richard Roberts - VP, Financial Planning and Analysis and IR Mark Pytosh - CEO Dane Neumann - CFO Conference Call Participants Rob McGuire - Granite Research Operator Greetings, and welcome to the CVR Partners LP Second Quarter 2023 Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions ...
CVR Partners(UAN) - 2023 Q1 - Quarterly Report
2023-05-02 20:53
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, 2023 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 ...
CVR Partners(UAN) - 2023 Q1 - Earnings Call Transcript
2023-05-02 20:45
CVR Partners, LP (NYSE:UAN) Q1 2023 Results Conference Call May 2, 2023 11:00 AM ET Company Participants Richard Roberts - Vice President, Financial Planning and Analysis and IR Mark Pytosh - Chief Executive Officer Dane Neumann - Chief Financial Officer Conference Call Participants Rob McGuire - Granite Research Operator Greetings, and welcome to the CVR Partners LP First Quarter 2023 Conference Call. [Operator Instructions] It is now my pleasure to introduce your host. Richard Roberts, Vice President of ...
CVR Partners(UAN) - 2022 Q4 - Annual Report
2023-02-22 21:18
Commodity Price Risks - The company reported a significant reliance on natural gas as the primary raw material for nitrogen-based products, with market prices being volatile and influenced by grain prices and demand fluctuations [284]. - The company faces risks related to the cyclical and highly volatile nature of nitrogen fertilizer prices, which could materially impact financial performance [35]. - The company is exposed to significant market risks due to potential changes in fertilizer product prices, which are subject to fluctuations in commodity markets [284]. - The company has commitments to purchase natural gas through various contracts, indicating a strategic approach to manage commodity price risk [283]. - The company’s future operations may be influenced by geopolitical factors, including the ongoing Russia-Ukraine conflict, which could affect commodity supply chains and pricing [26]. Financial Performance - Net sales for the year ended December 31, 2022, were $835.6 million, a 57% increase from $532.6 million in 2021 [305]. - Operating income for 2022 was $319.9 million, compared to $134.5 million in 2021, reflecting a significant improvement in profitability [305]. - Net income for 2022 reached $286.8 million, up from $78.2 million in 2021, indicating a strong recovery and growth trajectory [305]. - Basic and diluted earnings per common unit for 2022 were $27.07, compared to $7.31 in 2021, showcasing enhanced earnings performance [305]. - Net income for the year ended December 31, 2022, was $286,801,000, a significant increase from $78,155,000 in 2021 [311]. - Net cash provided by operating activities increased to $301,464,000 in 2022 from $188,725,000 in 2021, reflecting a growth of 59.7% [311]. - Total revenue for the year ended December 31, 2022, was $835,584,000, a 57% increase from $532,581,000 in 2021 [383]. Asset and Liability Management - Total assets as of December 31, 2022, were $1.1 billion, a decrease from $1.13 billion in 2021, primarily due to changes in cash and long-term debt [302]. - Total current liabilities decreased to $126.1 million in 2022 from $161.9 million in 2021, indicating improved liquidity management [302]. - Long-term debt decreased to $546.8 million in 2022 from $610.6 million in 2021, reflecting a reduction in leverage [302]. - Cash and cash equivalents as of December 31, 2022, were $86.3 million, down from $112.5 million in 2021, highlighting cash flow dynamics [302]. - The total lease liability as of December 31, 2022, was $10,905,000, with total lease payments amounting to $12,220,000 [363]. Operational Efficiency - The company’s operations are dependent on third-party suppliers, which could adversely affect business continuity and operational efficiency [35]. - The company has limited asset diversification and is dependent on significant customers, which poses risks to revenue stability [30]. - The Partnership incurred turnaround expenses of $33.4 million in 2022, compared to $2.9 million in 2021 and $0.7 million in 2020, indicating a significant increase in maintenance activities [350]. - The Partnership's total property, plant, and equipment, net was $810,994,000 as of December 31, 2022, compared to $850,462,000 in 2021, a decrease of 4.6% [329]. Regulatory and Environmental Factors - The company is subject to environmental regulations that could increase operational costs and impact profitability [35]. - No liabilities have been recognized for environmental remediation matters as of December 31, 2022, indicating no identified probable or estimable issues [342]. - The environmental agreement allows CRRM to manage certain environmental liabilities, with no recorded liabilities as of December 31, 2022 [420]. Shareholder Returns - The Partnership declared a distribution of $10.50 per common unit for the fourth quarter of 2022, totaling $111.0 million, payable on March 13, 2023 [427]. - Total quarterly distributions for 2022 reached $204.8 million, with $129.6 million paid to public unitholders and $75.2 million to CVR Energy [426]. Customer Concentration - The largest concentration of credit for any one customer was approximately 45% of the accounts receivable net balance at December 31, 2022 [324]. - Major customers accounted for 30% and 26% of net sales for the years ended December 31, 2022, and 2020, respectively [387]. Compensation and Employee Costs - Share-based compensation increased to $9,231,000 in 2022 from $5,888,000 in 2021, reflecting a 56% rise [364]. - For the year ended December 31, 2022, the total compensation expense related to phantom unit awards was approximately $25.7 million, compared to $27.0 million in 2021 and $0.6 million in 2020 [393]. - The Partnership recognized personnel costs of $8.3 million for the year ended December 31, 2022, compared to $8.1 million in 2021 and $6.6 million in 2020 [416].
CVR Partners(UAN) - 2022 Q4 - Earnings Call Transcript
2023-02-22 20:15
CVR Partners, LP (NYSE:UAN) Q4 2022 Earnings Conference Call February 22, 2023 11:00 AM ET Company Participants Richard Roberts - Vice President, Financial Planning and Analysis and IR Mark Pytosh - Chief Executive Officer Dane Neumann - Chief Financial Officer Conference Call Participants Rob McGuire - Granite Research Operator Greetings. And welcome to the CVR Partners Fourth Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will fo ...
CVR Partners(UAN) - 2022 Q3 - Earnings Call Transcript
2022-11-01 17:45
CVR Partners, LP (NYSE:UAN) Q3 2022 Earnings Conference Call November 1, 2022 11:00 AM ET Company Participants Richard Roberts - Vice President of Financial Planning & Analysis & Investor Relations Mark Pytosh - Chief Executive Officer Dane Neumann - Chief Financial Officer Conference Call Participants Rob McGuire - Granite Research Operator Greetings. Welcome to CVR Partners LP Third Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will f ...