CVR Partners(UAN) - 2024 Q3 - Quarterly Results

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].