CVR Partners(US:UAN)2024-04-29 21:00Financial Performance - CVR Partners reported net income of $13 million, or $1.19 per common unit, on net sales of $128 million for Q1 2024, a significant decrease from net income of $102 million, or $9.64 per common unit, on net sales of $226 million in Q1 2023[2]. - EBITDA for Q1 2024 was $40 million, down from $124 million in Q1 2023, reflecting a decline in operating performance[2][23]. - Net income for Q1 2024 was $12.58 million, a significant drop from $101.87 million in Q1 2023[38]. - EBITDA and Adjusted EBITDA decreased to $39.51 million in Q1 2024 from $124.30 million in Q1 2023[38]. - The company generated $42.4 million in net cash flow from operating activities in Q1 2024, down from $130.4 million in Q1 2023[27]. - Available cash for distribution decreased to $20.35 million in Q1 2024 from $110.29 million in Q1 2023[38]. Production and Sales - The company produced a total of 193,000 tons of ammonia in Q1 2024, compared to 224,000 tons in Q1 2023, primarily due to a 14-day planned outage at the Coffeyville facility[6]. - Consolidated sales volumes for ammonia increased to 70,000 tons in Q1 2024 from 42,000 tons in Q1 2023, while UAN sales volumes decreased to 284,000 tons from 359,000 tons[30]. - Gross ammonia production volume decreased to 193,000 tons in Q1 2024 from 224,000 tons in Q1 2023, with net ammonia available for sale slightly down to 60,000 tons from 62,000 tons[30]. Pricing and Market Conditions - Average realized gate prices for UAN decreased by 42% to $267 per ton, while ammonia prices fell by 41% to $528 per ton compared to the previous year[7]. - Ammonia pricing at gate fell to $528 per ton in Q1 2024 from $888 per ton in Q1 2023, and UAN pricing decreased to $267 per ton from $457 per ton[30]. Capital Expenditures and Financial Position - Total capital expenditures for Q1 2024 were $4.6 million, an increase from $3.5 million in Q1 2023, with maintenance expenditures at $4.3 million[28]. - Working capital increased to $102.9 million as of March 31, 2024, compared to $90.4 million at the end of 2023[26]. - Total assets decreased slightly to $972.2 million from $975.3 million at the end of 2023[26]. Future Outlook - The company continues to focus on generating free cash flow despite the challenges faced in the current quarter[5]. - The company expects ammonia utilization rates for Q2 2024 to range between 95% and 100%[34]. - Direct operating expenses for Q2 2024 are projected to be between $50 million and $55 million[34]. - Capital expenditures for Q2 2024 are estimated to be between $15 million and $20 million[34]. Distributions - CVR Partners declared a cash distribution of $1.92 per common unit for Q1 2024, to be paid on May 20, 2024[5][8]. Utilization Rates - Consolidated ammonia utilization rate decreased to 90% in Q1 2024 from 105% in Q1 2023[29].