CVR Partners Reports Fourth Quarter and Full-Year 2024 Results

Rhea-AI Summary

CVR Partners (NYSE: UAN) reported Q4 2024 results with net income of $18 million ($1.73 per unit) and EBITDA of $50 million on net sales of $140 million. For full-year 2024, net income was $61 million ($5.76 per unit) with EBITDA of $179 million on net sales of $525 million.

The company achieved a 96% combined ammonia utilization rate for 2024, producing 210,000 tons of ammonia in Q4, with 80,000 net tons available for sale. Q4 average realized gate prices were $229 per ton for UAN (down 5%) and $475 per ton for ammonia (up 3%) compared to Q4 2023.

The Board declared a Q4 2024 cash distribution of $1.75 per common unit, bringing 2024's total distributions to $6.76 per unit. Management noted strong nitrogen fertilizer demand in Q4 and favorable market conditions for spring planting, with tight supply and increasing prices in Q1 2025.

Positive

• Net income increased from $10M to $18M in Q4 2024 YoY
• Strong 96% ammonia utilization rate for full-year 2024
• Q4 ammonia prices improved 3% YoY to $475 per ton
• Declared Q4 distribution of $1.75 per unit

Negative

• Full-year net income decreased from $172M to $61M YoY
• Full-year net sales declined from $681M to $525M YoY
• UAN prices declined 20% to $248 per ton for full-year 2024
• Ammonia prices dropped 16% to $479 per ton for full-year 2024
• Q4 net sales slightly decreased from $142M to $140M YoY

Insights

Financial Analyst

The Q4 2024 results reveal a complex picture for CVR Partners, with quarterly improvements masking significant year-over-year declines. The quarterly net income surge to $18 million (80% increase) and EBITDA growth to $50 million (31.6% increase) demonstrate strong sequential momentum. However, the full-year performance shows concerning trends, with net income dropping 64.5% to $61 million and EBITDA declining 36.3% to $179 million.

The operational excellence, marked by a 96% ammonia utilization rate, hasn't fully offset the impact of lower realized prices. UAN prices fell 20% to $248 per ton and ammonia prices declined 16% to $479 per ton year-over-year, significantly pressuring margins despite robust production volumes. This pricing weakness reflects broader market dynamics rather than company-specific issues.

The declared Q4 distribution of $1.75 per unit, while maintaining the partnership's commitment to unitholder returns, represents a careful balance between rewarding investors and maintaining operational flexibility. The variable distribution structure provides important protection against market volatility, particularly relevant given the seasonal nature of the fertilizer business and current market uncertainties.

Looking ahead, several positive catalysts are emerging:

• Recent increases in grain prices are improving farmer economics, potentially supporting stronger fertilizer demand and pricing
• Tight supply-demand dynamics in early 2025 suggest potential price improvements
• The company's high utilization rates and operational efficiency position it well to capitalize on market improvements

However, investors should note that the substantial year-over-year decline in financial metrics, despite strong operational performance, highlights the partnership's sensitivity to commodity price cycles and the importance of maintaining operational excellence to offset market pressures.

• Declared a fourth quarter 2024 cash distribution of $1.75 per common unit, bringing the cumulative cash distributions declared for 2024 to $6.76 per common unit.
• Achieved a combined ammonia utilization rate of 96 percent for full-year 2024.

SUGAR LAND, Texas, Feb. 18, 2025 (GLOBE NEWSWIRE) -- CVR Partners, LP (“CVR Partners” or the “Partnership”) (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products, today announced net income of $18 million, or $1.73 per common unit, and EBITDA of $50 million on net sales of $140 million for the fourth quarter of 2024, compared to net income of $10 million, or 94 cents per common unit, and EBITDA of $38 million on net sales of $142 million for the fourth quarter of 2023.

CVR Partners had net income of $61 million, or $5.76 per common unit, and EBITDA of $179 million on net sales of $525 million for full-year 2024, compared to net income of $172 million, or $16.31 per common unit, and EBITDA of $281 million on net sales of $681 million for full-year 2023.

“CVR Partners posted strong operating results for the 2024 full-year and fourth quarter, driven by safe, reliable operations and a combined ammonia production rate of 96 percent for the year,” said Mark Pytosh, Chief Executive Officer. “Despite challenging weather conditions during the fall application, nitrogen fertilizer demand was strong in the fourth quarter, with higher prices compared to the third quarter and strong shipments.

“During the 2025 first quarter, supply and demand for nitrogen fertilizer products have been tight and prices have continued to increase,” Pytosh said. “With the recent rally in grain prices, market conditions look favorable for the spring planting season.

“Looking forward, we will continue to focus on the high utilization of our plants and the generation of free cash flow,” Pytosh said. “In addition, CVR Partners is pleased to declare a fourth quarter 2024 cash distribution of $1.75 per common unit.”

Consolidated Operations

CVR Partners’ fertilizer facilities produced a combined 210,000 tons of ammonia during the fourth quarter of 2024, of which 80,000 net tons were available for sale, while the rest was upgraded to other fertilizer products, including 310,000 tons of UAN. During the fourth quarter of 2023, the fertilizer facilities produced a combined 205,000 tons of ammonia, of which 75,000 net tons were available for sale, while the remainder was upgraded to other fertilizer products, including 306,000 tons of UAN.

For the fourth quarter of 2024, CVR Partners’ average realized gate prices for UAN declined by 5 percent to $229 per ton and ammonia improved by 3 percent to $475 per ton when compared to the fourth quarter of 2023. Average realized gate prices for UAN and ammonia were $241 per ton and $461 per ton, respectively, for the fourth quarter of 2023.

CVR Partners’ fertilizer facilities produced a combined 836,000 tons of ammonia for full-year 2024, of which 270,000 net tons were available for sale, while the rest was upgraded to other fertilizer products, including 1,273,000 tons of UAN. For full-year 2023, the fertilizer facilities produced a combined 864,000 tons of ammonia, of which 270,000 net tons were available for sale, while the remainder was upgraded to other fertilizer products, including 1,369,000 tons of UAN.

For full-year 2024, the average realized gate price for UAN declined by 20 percent to $248 per ton and ammonia declined 16 percent to $479 per ton when compared to full-year 2023. Average realized gate prices for UAN and ammonia were $309 per ton and $573 per ton, respectively, for full-year 2023.

Distributions

CVR Partners announced that the board of directors of its general partner (the “Board”) declared a fourth quarter 2024 cash distribution of $1.75 per common unit, which will be paid on March 10, 2025, to common unitholders of record as of March 3, 2025.

CVR Partners is a variable distribution master limited partnership. As a result, its distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, use of cash and cash reserves deemed necessary or appropriate by the Board.

Fourth Quarter 2024 Earnings Conference Call

CVR Partners previously announced that it will host its fourth quarter and full-year 2024 Earnings Conference Call on Wednesday, February 19, at 11 a.m. Eastern. This Earnings Conference Call may also include discussion of the Partnership’s developments, forward-looking information and other material information about business and financial matters.

The fourth quarter and full-year 2024 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Partners’ website at www.CVRPartners.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8029. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/kcgnk2wr. A repeat of the call can be accessed for 14 days by dialing (877) 660-6853, conference ID 13751233.

Qualified Notice
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Partners’ distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Partners’ distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Forward-Looking Statements
This news release contains forward-looking statements. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; net income and net sales; drivers of our results; utilization and production rates; nitrogen fertilizer pricing and demand; farmer economics and planting seasons; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; ability to generate free cash flow; distributions, including the timing, payment and amount (if any) thereof; global fertilizer industry conditions; grain prices; crop inventory levels; direct operating expenses; capital expenditures; turnaround expense and timing; cash reserves; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) impacts of the planting season on our business; general economic and business conditions, political disturbances, geopolitical instability and tensions; existing and future laws, rulings, policies and regulations, including the reinterpretation or amplification thereof by regulators, and including but not limited to those relating to the environment, climate change, and/or the production, transportation, or storage of hazardous chemicals, materials, or substances, like ammonia; political uncertainty and impacts to the United States economy generally as a result of actions taken by a new administration, including the imposition of tariffs or changes in climate or other laws, rules, regulations, or policies; potential operating hazards and impacts from accidents, fires, severe weather, tornadoes, floods, wildfires, or other natural disasters; the health and economic effects of any pandemic; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Partners disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

About CVR Partners, LP
Headquartered in Sugar Land, Texas, CVR Partners, LP is a Delaware limited partnership focused on the production, marketing and distribution of nitrogen fertilizer products. It primarily produces urea ammonium nitrate (UAN) and ammonia, which are predominantly used by farmers to improve the yield and quality of their crops. CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,100 ton-per-day UAN unit and a dual-train gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. CVR Partners’ East Dubuque, Illinois, nitrogen fertilizer manufacturing facility includes a 1,075 ton-per-day ammonia unit and a 950 ton-per-day UAN unit.

Investors and others should note that CVR Partners may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of its website. CVR Partners may use these channels to distribute material information about the Partnership and to communicate important information about the Partnership, corporate initiatives and other matters. Information that CVR Partners posts on its website could be deemed material; therefore, CVR Partners encourages investors, the media, its customers, business partners and others interested in the Partnership to review the information posted on its website.

Contact Information:

Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVRPartners.com

Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVRPartners.com

Non-GAAP Measures

Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.

The following are non-GAAP measures we present for the three and twelve months ended December 31, 2024 and 2023:

EBITDA - Net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

Adjusted EBITDA - EBITDA adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.

Available Cash for Distribution - EBITDA for the quarter excluding non-cash income or expense items (if any), for which adjustment is deemed necessary or appropriate by the Board in its sole discretion, less (i) reserves for maintenance capital expenditures, debt service and other contractual obligations, and (ii) reserves for future operating or capital needs (if any), in each case, that the Board deems necessary or appropriate in its sole discretion. Available Cash for Distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the Board.

We present these measures because we believe they may help investors, analysts, lenders, and ratings agencies analyze our results of operations and liquidity in conjunction with our GAAP results, including, but not limited to, our operating performance as compared to other publicly traded companies in the fertilizer industry, without regard to historical cost basis or financing methods, and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable GAAP financial measures. Refer to the “Non-GAAP Reconciliations” included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.

CVR Partners, LP (unaudited)
Statement of Operations Data
	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except per unit data)		2024				2023				2024				2023
Net sales(1)	$	139,555			$	141,619			$	525,324			$	681,477
Operating costs and expenses:
Cost of materials and other		26,437				33,385				104,141				134,377
Direct operating expenses (exclusive of depreciation and amortization)		55,922				63,154				214,222				234,916
Depreciation and amortization		24,033				20,636				88,096				79,720
Cost of sales		106,392				117,175				406,459				449,013
Selling, general and administrative expenses		7,348				7,043				28,414				29,523
Loss on asset disposal		83				209				100				1,533
Operating income		25,732				17,192				90,351				201,408
Other income (expense):
Interest expense, net		(7,411	)			(7,059	)			(29,827	)			(28,653	)
Other income, net		76				54				453				(33	)
Income before income tax expense		18,397				10,187				60,977				172,722
Income tax expense		102				212				77				289
Net income	$	18,295			$	9,975			$	60,900			$	172,433
Basic and diluted earnings per common unit	$	1.73			$	0.94			$	5.76			$	16.31
Distributions declared per common unit		1.19				1.55				6.69				26.62
EBITDA*	$	49,841			$	37,882			$	178,900			$	281,095
Available cash for distribution*		18,476				17,752				71,511				188,193
Weighted-average common units outstanding:
Basic and diluted		10,570				10,570				10,570				10,570

_________________________

*		See “Non-GAAP Reconciliations” section below for a reconciliation of these amounts.
(1)		Below are the components of net sales:

	Three Months Ended December 31,						Year Ended December 31,
(in thousands)		2024			2023			2024			2023
Components of net sales:
Fertilizer sales	$	125,818		$	127,663		$	472,409		$	621,185
Other		13,737			13,956			52,915			60,292
Total net sales	$	139,555		$	141,619		$	525,324		$	681,477

Selected Balance Sheet Data

(in thousands)	December 31, 2024			December 31, 2023
Cash and cash equivalents	$	90,857		$	45,279
Working capital		122,192			90,396
Total assets		1,018,724			975,332
Total debt, including current portion		568,851			547,308
Total liabilities		725,654			672,452
Total partners’ capital		293,070			302,880

Selected Cash Flow Data

	Three Months Ended December 31,								Year Ended December 31,
(in thousands)		2024				2023				2024				2023
Net cash flows provided by (used in):
Operating activities	$	12,791			$	(17,863	)		$	150,541			$	243,526
Investing activities		(17,535	)			(9,650	)			(31,892	)			(2,722	)
Financing activities		(14,938	)			(16,383	)			(73,071	)			(281,864	)
Net (decrease) increase in cash and cash equivalents	$	(19,682	)		$	(43,896	)		$	45,578			$	(41,060	)

Capital Expenditures

	Three Months Ended December 31,						Year Ended December 31,
(in thousands)		2024			2023			2024			2023
Maintenance	$	14,423		$	10,743		$	30,014		$	28,025
Growth		3,435			241			7,049			1,056
Total capital expenditures	$	17,858		$	10,984		$	37,063		$	29,081

Key Operating Data

	Three Months Ended December 31,						Year Ended December 31,
(percent of capacity utilization)	2024			2023			2024			2023
Ammonia utilization rate(1)	96	%		94	%		96	%		100	%

_________________________

(1)		Reflects our ammonia utilization rate on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of the Partnership’s facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and twelve months ended December 31, 2024 and 2023, respectively, and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.

Sales and Production Data

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Consolidated sales (thousands of tons):
Ammonia		97			98			271			281
UAN		310			320			1,260			1,395
Consolidated product pricing at gate (dollars per ton):(1)
Ammonia	$	475		$	461		$	479		$	573
UAN		229			241			248			309
Consolidated production volume (thousands of tons):
Ammonia (gross produced)(2)		210			205			836			864
Ammonia (net available for sale)(2)		80			75			270			270
UAN		310			306			1,273			1,369
Feedstock:
Petroleum coke used in production(thousands of tons)		123			131			517			518
Petroleum coke(dollars per ton)	$	55.71		$	77.09		$	59.69		$	78.14
Natural gas used in production(thousands of MMBtus)(3)		2,224			2,033			8,667			8,462
Natural gas used in production(dollars per MMBtu)(3)	$	3.00		$	2.95		$	2.56		$	3.42
Natural gas in cost of materials and other(thousands of MMBtus)(3)		2,352			2,317			7,755			8,671
Natural gas in cost of materials and other(dollars per MMBtu)(3)	$	2.50		$	2.83		$	2.50		$	3.84

_________________________

(1)		Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
(2)		Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
(3)		The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.

Key Market Indicators

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Ammonia — Southern plains(dollars per ton)	$	526		$	648		$	526		$	564
Ammonia — Corn belt(dollars per ton)		595			704			573			644
UAN — Corn belt(dollars per ton)		274			301			277			311
Natural gas NYMEX(dollars per MMBtu)	$	2.98		$	2.92		$	2.41		$	2.67

Q1 2025 Outlook

The table below summarizes our outlook for certain operational statistics and financial information for the first quarter of 2025. See “Forward-Looking Statements” above.

	Q1 2025
	Low				High
Ammonia utilization rate		95	%			100	%
Direct operating expenses(in millions)(1)	$	55			$	65
Total capital expenditures(in millions)(2)	$	12			$	16

_________________________

(1)		Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and impacts of inventory adjustments.
(2)		Capital expenditures are disclosed on an accrual basis.

Non-GAAP Reconciliations:

Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Available Cash for Distribution

	Three Months Ended December 31,								Year Ended December 31,
(in thousands)		2024				2023				2024				2023
Net income	$	18,295			$	9,975			$	60,900			$	172,433
Interest expense, net		7,411				7,059				29,827				28,653
Income tax expense		102				212				77				289
Depreciation and amortization		24,033				20,636				88,096				79,720
EBITDA and Adjusted EBITDA		49,841				37,882				178,900				281,095
Adjustments (Reserves)/Releases:
Accrued interest expense (excluding capitalized interest)		(8,717	)			(8,486	)			(34,173	)			(33,885	)
Future operating needs(1)		—				7,500				—				(6,350	)
Capital expenditures(2)		(18,698	)			(15,019	)			(59,114	)			(56,400	)
Turnaround expenditures, net(3)		(3,175	)			(3,344	)			(12,947	)			(11,543	)
Equity method investment(4)		(775	)			(781	)			(1,155	)			15,776
Principal payments on senior secured notes and deferred financing costs		—				—				—				(500	)
Available cash for distribution(5)	$	18,476			$	17,752			$	71,511			$	188,193
Common units outstanding		10,570				10,570				10,570				10,570

_________________________

(1)		Amount consists of adjustment of expenses incurred by the city of Coffeyville during winter storm Uri in 2021 and cash impacts thereof and reserves established by the Board for potential future cash needs related to nitrogen fertilizer seasonality and feedstock price volatility.
(2)		Amount consists of maintenance capital expenditures, including additional reserves for future growth projects of $4 million and $4 million for the three months ended December 31, 2024 and 2023, respectively, and $29 million and $28 million for the years ended December 31, 2024 and 2023, respectively.
(3)		Amount consists of reserves for periodic, planned turnarounds, net of expenditures incurred in the period.
(4)		Amount consists of distributions received by the Partnership adjusted for the amortization of deferred revenue related to the 45Q transaction.
(5)		Amount represents the cumulative available cash for distribution based on full year results. However, available cash for distribution is calculated quarterly, with distributions (if any) being paid in the following period. The Partnership declared and paid cash distributions of $1.68, $1.92, $1.90, and $1.19 per common unit related to the fourth quarter of 2023, and the first, second, and third quarters of 2024, respectively, and declared a cash distribution of $1.75 per common unit related to the fourth quarter of 2024, to be paid in March 2025.

FAQ

What was CVR Partners (UAN) earnings per unit for Q4 2024?

CVR Partners reported earnings of $1.73 per common unit for Q4 2024.

How much is UAN's Q4 2024 cash distribution?

CVR Partners declared a Q4 2024 cash distribution of $1.75 per common unit, payable on March 10, 2025.

What was CVR Partners' (UAN) ammonia production in 2024?

CVR Partners produced 836,000 tons of ammonia in 2024, with 270,000 net tons available for sale.

How did UAN's full-year 2024 financial results compare to 2023?

Full-year net income decreased from $172M to $61M, and net sales declined from $681M to $525M compared to 2023.

What was CVR Partners' (UAN) ammonia utilization rate in 2024?

CVR Partners achieved a combined ammonia utilization rate of 96% for full-year 2024.