Workflow
CVR Partners(UAN) - 2024 Q3 - Quarterly Results
UANCVR Partners(UAN)2024-10-28 21:12

Financial Performance - Third quarter net income was 4million,or4 million, or 0.36 per common unit, with EBITDA of 36milliononnetsalesof36 million on net sales of 125 million, compared to net income of 1million,or1 million, or 0.07 per common unit, and EBITDA of 32milliononnetsalesof32 million on net sales of 131 million in Q3 2023[1]. - Operating income for Q3 2024 was 11million,anincreasefrom11 million, an increase from 8.1 million in Q3 2023[20]. - The total net sales for the first nine months of 2024 were 385.8million,comparedto385.8 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,comparedto86,725,000, 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,downfrom12,612,000, 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 109.5millionoftotalnetsalesinQ32024,downfrom109.5 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 229perton,whileammoniapricesroseby9229 per ton, while ammonia prices rose by 9% to 399 per ton compared to Q3 2023[4]. - Average product pricing for ammonia was 399pertonforthethreemonthsendedSeptember30,2024,comparedto399 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,upfrom9,699,000, 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 19millionto19 million to 23 million[31]. Cash Distribution - The company declared a cash distribution of 1.19percommonunitforQ32024,tobepaidonNovember18,2024[5].−Thecompany’svariabledistributionmodelmeansfuturedistributionsmayfluctuatebasedonoperationalperformanceandmarketconditions[6].DirectOperatingExpenses−DirectoperatingexpensesforQ42024areprojectedtobebetween1.19 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 70million[31].FinancialPosition−CashandcashequivalentsasofSeptember30,2023,were70 million[31]. Financial Position - Cash and cash equivalents as of September 30, 2023, were 45,279,000, with total assets of 975,332,000andtotalliabilitiesof975,332,000 and total liabilities of 672,452,000[24].