Core Insights - The company reported a net sales of $131 million and a net loss of $10 million for Q4 2025, with an EBITDA of $20 million [1][6] - For the full year 2025, net sales reached $606 million, with an EBITDA of $211 million and a net income of $99 million, equating to $9.33 per common unit [6][4] - The board declared a distribution of $0.37 per common unit for Q4 2025, with full-year distributions totaling $10.54 per common unit [4][11] Financial Performance - Q4 2025 EBITDA decreased compared to Q4 2024 primarily due to lower production and sales volumes, alongside higher direct operating costs related to a planned turnaround at the Coffeyville facility [6][11] - Direct operating expenses for Q4 2025 were $81 million, including $14 million in turnaround expenses, with an increase of approximately $9 million from Q4 2024 [9][6] - Total ammonia production for Q4 was 140,000 gross tons, with 62,000 net tons available for sale, and UAN production was 169,000 tons [7] Market Conditions - Prices for UAN increased by approximately 55% and ammonia prices by about 32% compared to the prior-year period [8] - The company anticipates strong demand for nitrogen fertilizers in the spring planting season, with expectations of 95 million acres of corn to be planted in 2026 [12][27] - Global inventory levels for nitrogen fertilizers remain tight, influenced by geopolitical tensions and production capacity issues in key regions [13][14] Operational Updates - The ammonia plant utilization rate for 2025 was 88%, with Q4 utilization impacted by a turnaround and startup issues at the Coffeyville facility [4][5] - The company is focused on improving reliability and production rates through ongoing debottlenecking projects and capital expenditures [15][16] - Maintenance capital spending for 2025 was $57 million, with estimates for 2026 maintenance capital spending between $35 million and $45 million [9][10] Future Outlook - The company expects ammonia utilization rates to be between 95% and 100% in 2026, with direct operating expenses projected to be between $57 million and $62 million [11] - There is optimism regarding the spring planting season due to favorable weather conditions and early movement of ammonia [28][29] - The company is actively monitoring supply constraints and geopolitical risks that could impact nitrogen fertilizer markets [13][27]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $131 million, a net loss of $10 million, and EBITDA of $20 million [4][8] - For the full year 2025, net sales were $606 million, with an operating income of $129 million and net income of $99 million, translating to $9.33 per common unit [8] - EBITDA for the full year was $211 million, with a distribution of $10.54 per common unit [5][8] Business Line Data and Key Metrics Changes - Total ammonia production for Q4 was 140,000 gross tons, with 62,000 net tons available for sale, and UAN production was 169,000 tons [9] - UAN sales volumes were lower due to planned turnaround and startup issues, but prices increased by approximately 55% compared to Q4 2024, while ammonia prices rose by approximately 32% [9] Market Data and Key Metrics Changes - The company noted strong pricing for nitrogen fertilizers throughout Q4, despite lower production and sales volumes [5][9] - The USDA estimates a record crop year for 2025, with corn yields of nearly 187 bushels per acre on approximately 99 million acres planted [13] - U.S. inventory carryout levels for corn are expected to be above the 10-year average, while soybean levels are below [13] Company Strategy and Development Direction - The company is focused on improving reliability and production rates through debottlenecking projects at both plants, aiming for utilization rates above 95% [16][17] - Plans include expanding DEF production and load-out capacity, and a feedstock diversification project at the Coffeyville facility [17] - The board has reserved capital for future projects, expecting to spend over the next two years [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring planting season, anticipating strong demand for nitrogen fertilizers due to depleted soil nitrogen levels [13][30] - Geopolitical tensions and natural gas supply issues in Europe are seen as risks that could impact nitrogen fertilizer supplies [14][15] - The company expects ammonia utilization rates to be between 95% and 100% in Q1 2026, with direct operating expenses projected at $57 million to $62 million [11][12] Other Important Information - Direct operating expenses for Q4 2025 were $81 million, including $14 million in turnaround expenses [10] - The company ended the quarter with total liquidity of $117 million, consisting of $69 million in cash and $48 million available under the ABL facility [11] Q&A Session Summary Question: What are you seeing in terms of UAN imports? - Management noted a decrease in imports from Trinidad due to a plant being down, keeping the UAN market tight [22] Question: Is current deferred revenue down due to less product pre-sold? - Management clarified it was a timing issue, with more activity expected in January and February [25] Question: Will ammonia and UAN pricing increase sequentially heading into Q1 2026? - Management confirmed an uptick in prices based on the current book of business [26] Question: Is the air separator issue at Coffeyville resolved? - Management expressed confidence that issues have been addressed and is in discussions with the service provider for future operations [27][28] Question: How does acreage down for corn affect demand? - Management remains optimistic about demand due to nitrogen depletion in soil and supply constraints [29][30]