CVR Partners(UAN) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, CVR Partners reported net income of $18 million, or $1.73 per common unit, and EBITDA of $50 million on net sales of $140 million, compared to net income of $10 million, or $0.94 per common unit, and EBITDA of $38 million on net sales of $142 million in Q4 2023[2][3]. - For the full year 2024, net income was $61 million, or $5.76 per common unit, with EBITDA of $179 million on net sales of $525 million, down from net income of $172 million, or $16.31 per common unit, and EBITDA of $281 million on net sales of $681 million in 2023[3][9]. - Total net sales for the year ended December 31, 2024, were $525,324,000, a decrease of 22.9% compared to $681,477,000 in 2023[26]. - Fertilizer sales for the three months ended December 31, 2024, were $125,818,000, down from $127,663,000 in the same period of 2023, representing a decline of 1.3%[26]. - Net income for the year ended December 31, 2024, was $60,900,000, a decrease of 64.7% compared to $172,433,000 in 2023[37]. - Available cash for distribution for the year ended December 31, 2024, was $71,511,000, down from $188,193,000 in 2023, a decline of 62%[40]. Production and Utilization - CVR Partners achieved a combined ammonia production rate of 96% for the full year 2024, producing 836,000 tons of ammonia, with 270,000 net tons available for sale[9][8]. - In Q4 2024, CVR Partners produced 210,000 tons of ammonia, with 80,000 net tons available for sale, compared to 205,000 tons produced in Q4 2023[6][4]. - The ammonia utilization rate for the year ended December 31, 2024, was 96%, slightly down from 100% in 2023[31]. - The company expects ammonia utilization rates for Q1 2025 to range between 95% and 100%[36]. Pricing and Market Conditions - The average realized gate price for UAN decreased by 20% to $248 per ton in 2024, while ammonia prices fell by 16% to $479 per ton compared to 2023[9]. - The average price of ammonia in the Southern plains decreased to $526 per ton in Q4 2024, down from $648 per ton in Q4 2023, a decline of 18.8%[34]. - The company noted strong nitrogen fertilizer demand in Q4 2024, despite challenging weather conditions, with higher prices compared to Q3 2024[4][5]. Cash Flow and Expenditures - Cash and cash equivalents increased to $90,857,000 as of December 31, 2024, compared to $45,279,000 in 2023, reflecting a growth of 100.7%[27]. - Operating activities generated net cash flows of $12,791,000 for the three months ended December 31, 2024, compared to a cash outflow of $17,863,000 in 2023[28]. - Total capital expenditures for the year ended December 31, 2024, were $37,063,000, an increase of 27.5% from $29,081,000 in 2023[29]. Distributions - The company declared a Q4 2024 cash distribution of $1.75 per common unit, totaling $6.76 per common unit for the year[10][9]. - The board of directors declared a cash distribution to be paid on March 10, 2025, to common unitholders of record as of March 3, 2025[10][9].