CVR Partners(UAN) - 2024 Q2 - Quarterly Results

CVR Partners Second Quarter 2024 Results Financial & Operational Highlights 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][34] - CEO Mark Pytosh noted solid operating results driven by safe, reliable operations and a combined ammonia production rate of 102%, despite weather interruptions[16] 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] Financial Statements 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) | ($52,664) | Operational Data & Key Metrics Operational performance remained strong with a high ammonia utilization rate and stable production, though ammonia sales volumes decreased Ammonia Utilization Rate | Operating Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Ammonia Utilization | 102% | 100% | 96% | 103% | Production and Sales Volumes | Production/Sales (thousand tons) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Ammonia Sales Volume | 43 | 79 | | UAN Sales Volume | 330 | 329 | | Ammonia Production (gross) | 221 | 219 | | UAN Production | 337 | 339 | Average Feedstock Costs | Feedstock Cost | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Petroleum coke ($ 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 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] 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 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][42] 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 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] - The company will host its second quarter 2024 Earnings Conference Call on Tuesday, July 30, at 11 a.m. Eastern[36][20] - 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] - The news release contains forward-looking statements concerning estimates and projections about future results, performance, and events[22]