CVR Partners, LP (UAN) Bundle
A Brief History of CVR Partners, LP
CVR Partners, LP is a publicly traded limited partnership formed in 2011, primarily engaged in the production of nitrogen fertilizers. The company operates two facilities: the Coffeyville Facility in Kansas and the East Dubuque Facility in Illinois. The partnership's operations are centered around the production of urea ammonium nitrate (UAN) and ammonia, which are essential for agricultural applications.
Financial Performance Overview
As of September 30, 2024, CVR Partners reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales (in thousands) | $125,203 | $130,592 | $385,769 | $539,858 |
| Operating Income (in thousands) | $11,000 | $8,138 | $64,620 | $184,217 |
| Net Income (in thousands) | $3,807 | $731 | $42,605 | $162,458 |
| EBITDA (in thousands) | $35,780 | $32,382 | $129,059 | $243,213 |
Production Volumes
The production volumes for ammonia and UAN have fluctuated, primarily due to operational outages and market conditions. The following table summarizes the production metrics:
| Production Metric | Q3 2024 (in thousands of tons) | Q3 2023 (in thousands of tons) | YTD 2024 (in thousands of tons) | YTD 2023 (in thousands of tons) |
|---|---|---|---|---|
| Ammonia (Gross Produced) | 212 | 217 | 626 | 660 |
| Ammonia (Net Available for Sale) | 61 | 68 | 191 | 200 |
| UAN | 321 | 358 | 964 | 1,063 |
Cost of Materials and Operating Expenses
For the three months ended September 30, 2024, CVR Partners reported costs as follows:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Materials and Other | $26,263 | $31,004 |
| Direct Operating Expenses | $55,761 | $58,459 |
| Depreciation and Amortization | $24,732 | $24,119 |
Cash Flows
The cash flow statement for the nine months ended September 30, 2024, indicates significant changes in cash flows:
| Cash Flow Category | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $137,750 | $261,389 |
| Net Cash Used in Investing Activities | ($14,357) | $6,928 |
| Net Cash Used in Financing Activities | ($58,133) | ($265,481) |
| Net Increase in Cash and Cash Equivalents | $65,260 | $2,836 |
Distribution History
In 2024, CVR Partners declared quarterly distributions as follows:
| Quarter | Distribution per Unit | Total Distribution (in thousands) |
|---|---|---|
| Q1 2024 | $1.92 | $12,821 |
| Q2 2024 | $1.90 | $12,688 |
| Q3 2024 | $1.19 (declared) | $12,600 (estimated) |
The company continues to navigate operational challenges and market fluctuations, aiming to maintain its position in the nitrogen fertilizer industry while adapting to changing economic conditions.
A Who Owns CVR Partners, LP (UAN)
Ownership Structure
CVR Partners, LP is primarily owned by its parent company, CVR Energy, Inc., which holds a significant majority of the partnership's common units.
Major Shareholders
As of 2024, the ownership distribution of CVR Partners is as follows:
| Shareholder | Ownership Percentage | Units Owned |
|---|---|---|
| CVR Energy, Inc. | Approx. 70% | 7,398,725 |
| Public Unitholders | Approx. 30% | 3,170,912 |
Institutional Ownership
Institutional investors also play a role in the ownership of CVR Partners. Notable institutional shareholders include:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 5.2% |
| BlackRock, Inc. | 4.7% |
| State Street Corporation | 3.5% |
Recent Changes in Ownership
During the fiscal year 2024, CVR Partners has seen fluctuations in its unit ownership primarily due to trading activity among institutional investors.
Distributions to Unitholders
For the year 2024, CVR Partners declared and paid the following quarterly distributions:
| Quarter | Date Paid | Distribution per Common Unit | Total Distribution (in thousands) |
|---|---|---|---|
| Q1 | May 20, 2024 | $1.92 | $12,821 |
| Q2 | August 19, 2024 | $1.90 | $12,688 |
| Q3 | November 18, 2024 | $1.19 (declared) | $12,600 (estimated) |
Financial Performance Overview
As of September 30, 2024, CVR Partners reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in thousands) | $125,203 | $130,592 |
| Operating Income (in thousands) | $10,996 | $8,138 |
| Net Income (in thousands) | $3,807 | $731 |
Conclusion of Ownership Structure
The ownership of CVR Partners, LP is characterized by a dominant stake held by CVR Energy, with a notable presence of institutional investors and a significant portion of public unitholders.
CVR Partners, LP (UAN) Mission Statement
CVR Partners, LP aims to provide essential nitrogen fertilizer products to the agricultural sector while maintaining a commitment to operational excellence, sustainability, and value for stakeholders. The company focuses on producing urea ammonium nitrate (UAN) and ammonia, utilizing innovative technologies to optimize production efficiency and reduce environmental impact.
Financial Performance Overview
As of September 30, 2024, CVR Partners reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $125.2 million | $130.6 million | -$5.4 million |
| Operating Income | $11.0 million | $8.1 million | +$2.9 million |
| Net Income | $3.8 million | $0.7 million | +$3.1 million |
| Basic Earnings per Unit | $0.36 | $0.07 | +$0.29 |
Production Metrics
The production capabilities of CVR Partners include:
| Product | Q3 2024 (in thousands of tons) | Q3 2023 (in thousands of tons) |
|---|---|---|
| Ammonia (gross produced) | 212 | 217 |
| UAN | 321 | 358 |
Market Conditions and Pricing
Market conditions have influenced pricing and volume:
| Product | Price Variance (Q3 2024 vs Q3 2023) | Volume Variance (Q3 2024 vs Q3 2023) |
|---|---|---|
| UAN | $1,822 | -$11,397 |
| Ammonia | $2,120 | $23 |
Cash Flow and Distributions
CVR Partners' cash flow for the nine months ended September 30, 2024 was:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Operating Activities | $137,750 | $261,389 | -$123,639 |
| Investing Activities | -$14,357 | $6,928 | -$21,285 |
| Financing Activities | -$58,133 | -$265,481 | +$207,348 |
Debt and Capital Structure
As of September 30, 2024, CVR Partners reported the following debt metrics:
| Debt Type | Amount (in thousands) |
|---|---|
| 6.125% Senior Secured Notes | $550,000 |
| Total Long-term Debt | $547,710 |
Common units outstanding are 10,570,000 as of September 30, 2024.
Distribution Policy
For the third quarter of 2024, the declared distribution was:
| Quarter | Distribution per Unit | Total Distribution (in thousands) |
|---|---|---|
| Q3 2024 | $1.19 | $12,600 |
Overall, CVR Partners, LP continues to focus on maximizing value through strategic operations and effective management of resources, while adapting to market dynamics and maintaining a commitment to sustainability.
How CVR Partners, LP (UAN) Works
Operational Overview
CVR Partners, LP operates in the nitrogen fertilizer sector, primarily producing urea ammonium nitrate (UAN) and ammonia. The company has two main facilities: the Coffeyville Facility, which utilizes a petroleum coke gasification process, and the East Dubuque Facility, which uses natural gas for ammonia production.
Financial Performance
As of September 30, 2024, CVR Partners reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $125.2 million | $130.6 million | $385.8 million | $539.9 million |
| Operating Income | $11.0 million | $8.1 million | $64.6 million | $184.2 million |
| Net Income | $3.8 million | $0.7 million | $42.6 million | $162.5 million |
| EBITDA | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
Sales Volumes and Pricing
For the three months ended September 30, 2024, the sales volumes and pricing were as follows:
| Product | Sales Volume (thousands of tons) | Price Variance ($) | Volume Variance ($) |
|---|---|---|---|
| UAN | 321 | $1,822 | $(11,397) |
| Ammonia | 212 | $2,120 | $23 |
Cost Structure
For the three and nine months ended September 30, 2024, the cost of materials and other direct operating expenses were:
| Period | Cost of Materials and Other | Direct Operating Expenses |
|---|---|---|
| Q3 2024 | $26.3 million | $55.8 million |
| YTD 2024 | $77.7 million | $158.3 million |
| Q3 2023 | $31.0 million | $58.5 million |
| YTD 2023 | $101.0 million | $171.8 million |
Production Volumes
The production volumes for ammonia and UAN for the three and nine months ended September 30, 2024, compared to 2023, are as follows:
| Product | Q3 2024 (thousands of tons) | Q3 2023 (thousands of tons) | YTD 2024 (thousands of tons) | YTD 2023 (thousands of tons) |
|---|---|---|---|---|
| Ammonia (Gross Produced) | 212 | 217 | 626 | 660 |
| Ammonia (Net Available for Sale) | 61 | 68 | 191 | 200 |
| UAN | 321 | 358 | 964 | 1,063 |
Cash Flow Analysis
For the nine months ended September 30, 2024, CVR Partners reported cash flows as follows:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $137,750 | $261,389 |
| Investing Activities | $(14,357) | $6,928 |
| Financing Activities | $(58,133) | $(265,481) |
| Net Increase in Cash | $65,260 | $2,836 |
Debt and Equity Structure
As of September 30, 2024, CVR Partners had the following long-term debt:
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| 6.125% Senior Secured Notes | $550,000 | June 2028 |
CVR Partners had approximately $8.6 million of remaining performance obligations for contracts with an original expected duration of more than one year as of September 30, 2024.
Distributions
For 2024, the declared distributions per common unit were:
| Quarter | Date Paid | Distribution Per Common Unit | Total Distribution (in thousands) |
|---|---|---|---|
| Q1 2024 | May 20, 2024 | $1.92 | $12,821 |
| Q2 2024 | August 19, 2024 | $1.90 | $12,688 |
| Q3 2024 | November 18, 2024 (declared) | $1.19 | $12,600 |
How CVR Partners, LP (UAN) Makes Money
Revenue Generation
CVR Partners, LP primarily generates revenue through the production and sale of nitrogen fertilizer products, specifically UAN (urea ammonium nitrate) and ammonia. For the three months ended September 30, 2024, the Partnership reported total revenue of $125.2 million, compared to $130.6 million in the same period of 2023.
For the nine months ended September 30, 2024, total revenue was $385.8 million, a decrease from $539.9 million in the corresponding period of 2023.
| Product | Revenue Q3 2024 (in thousands) | Revenue Q3 2023 (in thousands) | Revenue YTD 2024 (in thousands) | Revenue YTD 2023 (in thousands) |
|---|---|---|---|---|
| Ammonia | $24,614 | $22,471 | $83,875 | $116,002 |
| UAN | $76,735 | $86,310 | $241,080 | $354,425 |
| Urea Products | $8,137 | $7,723 | $21,635 | $23,094 |
| Freight Revenue | $11,321 | $9,909 | $26,914 | $31,755 |
| Other Revenue | $4,396 | $4,179 | $12,265 | $14,582 |
| Total Revenue | $125,203 | $130,592 | $385,769 | $539,858 |
Cost Structure
The cost of materials and other direct operating expenses for the three months ended September 30, 2024, was $26.3 million, a decrease from $31.0 million in Q3 2023. For the nine-month period, costs were $77.7 million compared to $101.0 million in the prior year.
Direct operating expenses (exclusive of depreciation and amortization) for Q3 2024 were $55.8 million, compared to $58.5 million in Q3 2023. For the nine months, these expenses totaled $158.3 million, down from $171.8 million.
Production Volumes
Production volumes for the three and nine months ended September 30, 2024, are as follows:
| Product | Gross Produced (in thousands of tons) Q3 2024 | Gross Produced (in thousands of tons) Q3 2023 | Net Available for Sale (in thousands of tons) Q3 2024 | Net Available for Sale (in thousands of tons) Q3 2023 |
|---|---|---|---|---|
| Ammonia | 212 | 217 | 61 | 68 |
| UAN | 321 | 358 | 964 | 1,063 |
Market Conditions and Pricing
The pricing environment has been influenced by several factors, including supply chain issues and commodity prices. For the three months ended September 30, 2024, UAN pricing showed a variance of $1,822 in price, while ammonia pricing increased by $2,120.
However, for the nine months ended September 30, 2024, UAN pricing decreased by $72.1 million and ammonia pricing decreased by $26.7 million compared to the prior year, reflecting the impact of lower natural gas prices and increased global supply of nitrogen fertilizers.
Financial Performance
For the three months ended September 30, 2024, CVR Partners recorded an operating income of $11.0 million and a net income of $3.8 million. This contrasts with an operating income of $8.1 million and a net income of $0.7 million for the same period in 2023.
For the nine months ended September 30, 2024, the Partnership reported an operating income of $64.6 million and a net income of $42.6 million, compared to $184.2 million and $162.5 million respectively in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Income | $11.0 million | $8.1 million | $64.6 million | $184.2 million |
| Net Income | $3.8 million | $0.7 million | $42.6 million | $162.5 million |
Cash Flow and Distributions
For the nine months ended September 30, 2024, net cash flow provided by operating activities was $137.8 million, compared to $261.4 million in the prior year period. The Partnership declared a total distribution of $5.50 per common unit for 2024, totaling $58.1 million across all quarters.
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Article updated on 8 Nov 2024
Resources:
- CVR Partners, LP (UAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CVR Partners, LP (UAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CVR Partners, LP (UAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.