Financial Data and Key Metrics Changes - For Q2 2025, the company reported net sales of $169 million, net income of $39 million, and EBITDA of $67 million, with a declared distribution of $3.89 per common unit [5][8] - Consolidated ammonia plant utilization was 91%, impacted by planned and unplanned downtime, with combined ammonia production of 197,000 gross tons [5][8] - UAN and ammonia prices increased by 181% and 14% respectively compared to the prior year, driven by strong demand and tight inventories [6][12] Business Line Data and Key Metrics Changes - The company sold approximately 345,000 tons of UAN at an average price of $317 per ton and 57,000 tons of ammonia at an average price of $593 per ton [6][8] - Direct operating expenses for Q2 2025 were $60 million, with an increase of approximately $6 million from the previous year due to higher natural gas and electricity costs [8][34] Market Data and Key Metrics Changes - The USDA estimates a 4% increase in corn planting and a 3% decrease in soybean planting for 2025, with yield estimates of 181 bushels per acre for corn and 52.5 bushels per acre for soybeans [11][12] - Global nitrogen fertilizer inventories remain tight, supporting pricing, with geopolitical conflicts impacting supply [13][14] Company Strategy and Development Direction - The company is focusing on expanding ammonia capacity by approximately 8% and improving feedstock flexibility at its Coffeyville facility [16][18] - Ongoing projects aim to enhance reliability and production rates, with a target of operating plants at utilization rates above 95% [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for nitrogen fertilizers continuing into the second half of the year, despite some planned and unplanned downtime [11][12] - The company anticipates a significant portion of capital spending for 2025 will be funded through cash reserves, with total capital spending estimated between $55 million and $65 million [8][9] Other Important Information - The company plans a 30-day turnaround at the Coffeyville facility starting in early October, with expected expenses of approximately $15 million [18][19] - The CEO of the parent company, CVR Energy, announced retirement, with the current CEO of CVR Partners set to take over the role [19] Q&A Session Summary Question: Timing of UAN summer fill program and pricing strength - Management indicated that the summer UAN fill has not yet been completed, with expectations for it to occur in the next few weeks, and pricing is expected to decline less than usual due to tight supply [24][25] Question: Outlook on ammonia pricing for fall application - Management expects fall pricing to be similar to spring pricing, with a discount anticipated but not as significant as in previous years [26] Question: Increase in direct operating costs and maintenance expenses - Management acknowledged higher repair costs and inventory drawdowns contributing to increased direct operating expenses, with expectations for continued elevated costs in the third quarter [27][34] Question: Status of unplanned downtime and future utilization - Management confirmed that planned outages were managed well, and unplanned outages were addressed without expectation of recurrence [35][36] Question: Industry consolidation outlook - Management noted a favorable view towards consolidation in the nitrogen fertilizer space, influenced by geopolitical events and the potential merger of major rail companies [41][42] Question: Capacity from brownfield reliability and redundancy projects - Management indicated that brownfield projects could add approximately 100 tons per day of ammonia production at Coffeyville and 5% at East Dubuque, emphasizing the cost-effectiveness of these projects [44][45]