CVR Partners Reports Second Quarter 2024 Results
CVR Partners (NYSE: UAN) reported solid Q2 2024 results with net income of $26 million ($2.48 per unit) and EBITDA of $54 million on net sales of $133 million. This compares to net income of $60 million ($5.66 per unit) and EBITDA of $87 million on net sales of $183 million in Q2 2023. The company achieved a combined ammonia production rate of 102%, producing 221,000 tons of ammonia and 337,000 tons of UAN.
Despite weather interruptions, spring planting season saw higher-than-expected planted acreage and strong nitrogen fertilizer demand. Average realized gate prices decreased year-over-year, with UAN down 15% to $268 per ton and ammonia down 26% to $520 per ton. CVR Partners declared a Q2 2024 cash distribution of $1.90 per common unit, payable on August 19, 2024.
CVR Partners (NYSE: UAN) ha riportato risultati solidi per il secondo trimestre del 2024, con un utile netto di 26 milioni di dollari (2,48 dollari per unità) e un EBITDA di 54 milioni di dollari su vendite nette di 133 milioni di dollari. Questo è in confronto a un utile netto di 60 milioni di dollari (5,66 dollari per unità) e un EBITDA di 87 milioni di dollari su vendite nette di 183 milioni di dollari nel secondo trimestre del 2023. L'azienda ha raggiunto un tasso combinato di produzione di ammoniaca del 102%, producendo 221.000 tonnellate di ammoniaca e 337.000 tonnellate di UAN.
Nonostante le interruzioni meteorologiche, la stagione di piantagione primaverile ha visto un'area coltivata maggiore del previsto e una forte domanda di fertilizzanti azotati. I prezzi medi realizzati alle porte sono diminuiti rispetto all'anno precedente, con UAN in calo del 15% a 268 dollari per tonnellata e ammoniaca in calo del 26% a 520 dollari per tonnellata. CVR Partners ha dichiarato una distribuzione in contanti per il secondo trimestre del 2024 di 1,90 dollari per unità comune, pagabile il 19 agosto 2024.
CVR Partners (NYSE: UAN) reportó resultados sólidos en el segundo trimestre de 2024, con un ingreso neto de 26 millones de dólares (2,48 dólares por unidad) y un EBITDA de 54 millones de dólares sobre ventas netas de 133 millones de dólares. Esto se compara con un ingreso neto de 60 millones de dólares (5,66 dólares por unidad) y un EBITDA de 87 millones de dólares sobre ventas netas de 183 millones de dólares en el segundo trimestre de 2023. La compañía logró una tasa de producción combinada de amoníaco del 102%, produciendo 221,000 toneladas de amoníaco y 337,000 toneladas de UAN.
A pesar de las interrupciones climáticas, la temporada de siembra de primavera vio un área sembrada mayor de lo esperado y una fuerte demanda de fertilizantes nitrogenados. Los precios promedio realizados disminuyeron año tras año, con UAN cayendo un 15% a 268 dólares por tonelada y amoníaco cayendo un 26% a 520 dólares por tonelada. CVR Partners declaró una distribución en efectivo para el segundo trimestre de 2024 de 1,90 dólares por unidad común, pagadera el 19 de agosto de 2024.
CVR 파트너스 (NYSE: UAN)는 2024년 2분기 실적이 강력하다고 보고하며, 순이익이 2600만 달러 (주당 2.48달러)이고, EBITDA가 5400만 달러에 달하며, 순매출은 1억 3300만 달러라고 전했습니다. 이는 2023년 2분기 순이익 6000만 달러 (주당 5.66달러) 및 EBITDA 8700만 달러, 순매출 1억 8300만 달러와 비교됩니다. 이 회사는 102%의 결합 암모니아 생산 비율을 달성하여, 22만 1000톤의 암모니아와 33만 7000톤의 UAN을 생산했습니다.
날씨로 인한 방해에도 불구하고 봄 파종 시즌은 예상보다 높은 재배 면적과 강한 질소 비료 수요를 보였습니다. 평균 실현 가격은 전년 대비 감소했으며, UAN은 15% 하락하여 톤당 268달러, 암모니아는 26% 하락하여 톤당 520달러로 떨어졌습니다. CVR 파트너스는 2024년 2분기 일반 유닛당 1.90달러의 현금 배당금을 공표하였으며, 2024년 8월 19일 지급될 예정입니다.
CVR Partners (NYSE: UAN) a annoncé des résultats solides pour le deuxième trimestre 2024, avec un revenu net de 26 millions de dollars (2,48 dollars par unité) et un EBITDA de 54 millions de dollars sur des ventes nettes de 133 millions de dollars. Cela se compare à un revenu net de 60 millions de dollars (5,66 dollars par unité) et un EBITDA de 87 millions de dollars sur des ventes nettes de 183 millions de dollars au deuxième trimestre 2023. L'entreprise a atteint un taux de production combiné d'ammoniac de 102%, produisant 221 000 tonnes d'ammoniac et 337 000 tonnes de UAN.
Malgré des interruptions météorologiques, la saison de semis de printemps a enregistré une superficie cultivée plus élevée que prévu et une forte demande de fertilisants azotés. Les prix moyens réalisés ont diminué d'une année à l'autre, UAN a baissé de 15 % à 268 dollars par tonne et l'ammoniac a chuté de 26 % à 520 dollars par tonne. CVR Partners a déclaré une distribution en espèces pour le deuxième trimestre 2024 de 1,90 dollars par unité ordinaire, payable le 19 août 2024.
CVR Partners (NYSE: UAN) berichtete über starke Ergebnisse im 2. Quartal 2024 mit einem Nettogewinn von 26 Millionen Dollar (2,48 Dollar pro Einheit) und einem EBITDA von 54 Millionen Dollar bei Nettoverkäufen von 133 Millionen Dollar. Im Vergleich dazu lag der Nettogewinn im 2. Quartal 2023 bei 60 Millionen Dollar (5,66 Dollar pro Einheit) und das EBITDA bei 87 Millionen Dollar bei Nettoverkäufen von 183 Millionen Dollar. Das Unternehmen erzielte eine kombinierte Ammoniakproduktionsrate von 102% und produzierte 221.000 Tonnen Ammoniak und 337.000 Tonnen UAN.
Trotz wetterbedingter Unterbrechungen gab es in der Frühjahrssaison mehr als erwartete Anbauflächen und eine starke Nachfrage nach Stickstoffdünger. Die durchschnittlich realisierten Preise gingen im Jahresvergleich zurück, wobei UAN um 15% auf 268 Dollar pro Tonne fiel und Ammoniak um 26% auf 520 Dollar pro Tonne sank. CVR Partners verkündete eine Barausschüttung für das 2. Quartal 2024 in Höhe von 1,90 Dollar pro Stammaktie, die am 19. August 2024 zahlbar ist.
- Achieved 102% combined ammonia production rate
- Higher-than-expected planted acreage and strong nitrogen fertilizer demand
- Declared Q2 2024 cash distribution of $1.90 per common unit
- Continued strong demand for nitrogen fertilizer expected for remainder of 2024 at prices higher than 2023
- Net income decreased from $60 million in Q2 2023 to $26 million in Q2 2024
- EBITDA declined from $87 million in Q2 2023 to $54 million in Q2 2024
- Net sales dropped from $183 million in Q2 2023 to $133 million in Q2 2024
- Average realized gate prices for UAN decreased 15% year-over-year
- Average realized gate prices for ammonia decreased 26% year-over-year
Insights
CVR Partners' Q2 2024 results reveal a significant year-over-year decline in financial performance. Net income dropped by
Key financial highlights include:
- Net sales:
$133 million , down27.3% year-over-year - Earnings per unit:
$2.48 , a56.2% decrease - Cash distribution:
$1.90 per common unit
Despite the financial headwinds, CVR Partners maintained strong operational performance, with a combined ammonia production rate of
The declared cash distribution of
Looking ahead, management's outlook for stronger demand and higher prices in the remainder of 2024 compared to 2023 is a positive sign. However, investors should remain cautious given the volatility in fertilizer markets and the company's exposure to commodity price fluctuations.
The fertilizer market dynamics revealed in CVR Partners' Q2 2024 results offer intriguing insights for investors. Despite a challenging quarter, several factors suggest a potentially improving landscape:
- Resilient demand: Higher-than-expected planted acreage and strong nitrogen fertilizer demand indicate robust agricultural activity.
- Price recovery potential: Management's outlook for prices higher than 2023 levels for the remainder of 2024 suggests a possible market rebound.
- Supply-side efficiency: The
102% ammonia production rate demonstrates operational excellence, positioning the company well to capitalize on market improvements.
However, investors should consider the following market risks:
- Price volatility: The
15% and26% year-over-year declines in UAN and ammonia prices, respectively, highlight the market's unpredictability. - Weather dependency: The mention of weather interruptions during the spring planting season underscores the sector's vulnerability to climatic factors.
- Cyclical nature: Fertilizer markets are inherently cyclical and current positive outlooks may not persist long-term.
For the discerning investor, CVR Partners' performance amidst these market conditions presents a nuanced opportunity. The company's operational strength and positive forward-looking statements are encouraging, but must be weighed against the backdrop of a volatile commodity market and broader agricultural trends.
- Second quarter net income of
$26 million , or$2.48 per common unit; EBITDA of$54 million - Announced cash distribution of
$1.90 per common unit
SUGAR LAND, Texas, July 29, 2024 (GLOBE NEWSWIRE) -- CVR Partners, LP (NYSE: UAN, “CVR Partners” or the “Partnership”), a manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products, today announced net income of
“CVR Partners reported solid operating results for the second quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 102 percent,” said Mark Pytosh, Chief Executive Officer. “The spring planting season experienced some weather interruptions, however, planted acreage was higher than expected and demand for nitrogen fertilizer was strong.
“As we enter the new planting season, we have seen continued strong demand for nitrogen fertilizer for the remainder of 2024 at prices higher than 2023,” Pytosh said. “Our focus for the remainder of the year will continue to be on safe, reliable operations and maximizing our free cash flow generation.
“CVR Partners is pleased to declare a second quarter 2024 cash distribution of
Consolidated Operations
Production at CVR Partners’ fertilizer facilities remained consistent compared to the second quarter of 2023, producing a combined 221,000 tons of ammonia during the second quarter of 2024, of which 69,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 337,000 tons of urea ammonia nitrate (“UAN”). During the second quarter of 2023, the fertilizer facilities produced a combined 219,000 tons of ammonia, of which 70,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 339,000 tons of UAN.
For the second quarter 2024, average realized gate prices for UAN showed a reduction compared to the prior year, down 15 percent to
Distributions
CVR Partners also announced that on July 29, 2024, the Board of Directors of the Partnership’s general partner (the “Board”) declared a second quarter 2024 cash distribution of
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.
Second Quarter 2024 Earnings Conference Call
CVR Partners previously announced that it will host its second quarter 2024 Earnings Conference Call on Tuesday, July 30, 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 second quarter 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/4xqsyb4k. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13747770.
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, including factors driving same; EBITDA and Adjusted EBITDA; drivers of our results; utilization and production rates; nitrogen fertilizer pricing and demand; sales volumes; farmer economics; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; use of proceeds under our credit facility; distributions associated with our 45Q transaction, including the timing and amount thereof; carbon capture and decarbonization initiatives; planted grain acres; free cash flow generation; distributions, including the timing, payment and amount (if any) thereof; global fertilizer industry conditions; grain prices; crop inventory levels; purchases under our unit repurchase program (if any), including the timing, pricing and amount or termination thereof; direct operating expenses; capital expenditures; depreciation and amortization; turnaround expense and timing; cash reserves; inventories and adjustments thereto; impacts of any pandemic, including the duration thereof; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; 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) the health and economic effects of any pandemic, impacts of the planting season on our business, CVR Energy, Inc.’s and its controlling stockholder’s intention regarding potential strategic transactions involving the Partnership, general economic and business conditions, political disturbances, geopolitical instability and tensions, impacts of plant outages and weather conditions and events, 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 any 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 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.
For further information, please contact:
Investor Relations
Richard Roberts
CVR Partners, LP
(281) 207-3205
InvestorRelations@CVRPartners.com
Media Relations
Brandee Stephens
CVR Partners, LP
(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 periods ended June 30, 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 (all information in this release is unaudited) | |||||||||||||||
| Consolidated Statement of Operations Data | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands, except per unit data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales(1) | $ | 132,901 | $ | 183,005 | $ | 260,565 | $ | 409,266 | |||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of materials and other | 26,114 | 33,410 | 51,441 | 69,989 | |||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 46,870 | 55,759 | 102,539 | 113,303 | |||||||||||
| Depreciation and amortization | 20,040 | 19,755 | 39,331 | 34,965 | |||||||||||
| Cost of sales | 93,024 | 108,924 | 193,311 | 218,257 | |||||||||||
| Selling, general and administrative expenses | 6,308 | 7,291 | 13,618 | 14,675 | |||||||||||
| Loss on asset disposal | 5 | 64 | 13 | 256 | |||||||||||
| Operating income | 33,564 | 66,726 | 53,623 | 176,078 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (7,510 | ) | (6,919 | ) | (15,175 | ) | (14,093 | ) | |||||||
| Other income (expense), net | 165 | 52 | 325 | (212 | ) | ||||||||||
| Income before income tax expense | 26,219 | 59,859 | 38,773 | 161,773 | |||||||||||
| Income tax expense (benefit) | — | 2 | (25 | ) | 46 | ||||||||||
| Net income | $ | 26,219 | $ | 59,857 | $ | 38,798 | $ | 161,727 | |||||||
| Basic and diluted earnings per common unit | $ | 2.48 | $ | 5.66 | $ | 3.67 | $ | 15.30 | |||||||
| Distributions declared per common unit | 1.92 | 10.43 | 3.60 | 20.93 | |||||||||||
| EBITDA* | $ | 53,769 | $ | 86,533 | $ | 93,279 | $ | 210,831 | |||||||
| Available Cash for Distribution* | 20,113 | 43,778 | 40,425 | 154,071 | |||||||||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Components of net sales: | |||||||||||||||
| Fertilizer sales | $ | 119,400 | $ | 167,006 | $ | 237,215 | $ | 377,018 | |||||||
| Freight in revenue | 9,275 | 10,910 | 15,483 | 21,846 | |||||||||||
| Other | 4,226 | 5,089 | 7,867 | 10,402 | |||||||||||
| Total net sales | $ | 132,901 | $ | 183,005 | $ | 260,565 | $ | 409,266 | |||||||
Selected Balance Sheet Data
| (in thousands) | June 30, 2024 | December 31, 2023 | |||||
| Cash and cash equivalents | $ | 47,524 | $ | 45,279 | |||
| Working capital | 124,134 | 90,396 | |||||
| Total assets | 959,447 | 975,332 | |||||
| Total debt | 547,574 | 547,308 | |||||
| Total liabilities | 655,819 | 672,452 | |||||
| Total partners’ capital | 303,628 | 302,880 | |||||
Selected Cash Flow Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash flow provided by (used in): | |||||||||||||||
| Operating activities | $ | 8,608 | $ | 60,844 | $ | 51,025 | $ | 191,287 | |||||||
| Investing activities | (5,413 | ) | (3,268 | ) | (10,730 | ) | 12,294 | ||||||||
| Financing activities | (20,293 | ) | (110,240 | ) | (38,050 | ) | (221,221 | ) | |||||||
| Net (decrease) increase in cash and cash equivalents | $ | (17,098 | ) | $ | (52,664 | ) | $ | 2,245 | $ | (17,640 | ) | ||||
Capital Expenditures
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Maintenance | $ | 4,831 | $ | 5,691 | $ | 9,103 | $ | 9,191 | |||||||
| Growth | 64 | 598 | 403 | 623 | |||||||||||
| Total capital expenditures | $ | 4,895 | $ | 6,289 | $ | 9,506 | $ | 9,814 | |||||||
Key Operating Data
| Ammonia Utilization(1) | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (percent of capacity utilization) | 2024 | 2023 | 2024 | 2023 | |||||||
| Consolidated | 102 | % | 100 | % | 96 | % | 103 | % | |||
____________________________
(1) Reflects our ammonia utilization rates on a consolidated basis and at each of our facilities. 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 six months ended June 30, 2024 and 2023 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Consolidated sales volumes (thousand tons): | |||||||||||||||
| Ammonia | 43 | 79 | 113 | 121 | |||||||||||
| UAN | 330 | 329 | 614 | 688 | |||||||||||
| Consolidated product pricing at gate (dollars per ton):(1) | |||||||||||||||
| Ammonia | $ | 520 | $ | 707 | $ | 525 | $ | 770 | |||||||
| UAN | 268 | 316 | 268 | 390 | |||||||||||
| Consolidated production volume (thousand tons): | |||||||||||||||
| Ammonia (gross produced)(2) | 221 | 219 | 414 | 442 | |||||||||||
| Ammonia (net available for sale)(2) | 69 | 70 | 130 | 132 | |||||||||||
| UAN | 337 | 339 | 643 | 705 | |||||||||||
| Feedstock: | |||||||||||||||
| Petroleum coke used in production (thousands of tons) | 133 | 124 | 261 | 255 | |||||||||||
| Petroleum coke used in production (dollars per ton) | $ | 62.96 | $ | 73.91 | $ | 69.21 | $ | 75.62 | |||||||
| Natural gas used in production (thousands of MMBtus)(3) | 2,213 | 2,194 | 4,361 | 4,296 | |||||||||||
| Natural gas used in production (dollars per MMBtu)(3) | $ | 1.93 | $ | 2.35 | $ | 2.51 | $ | 4.02 | |||||||
| Natural gas in cost of materials and other (thousands of MMBtus)(3) | 1,855 | 2,403 | 3,620 | 3,718 | |||||||||||
| Natural gas in cost of materials and other (dollars per MMBtu)(3) | $ | 1.85 | $ | 4.11 | $ | 2.65 | $ | 5.41 | |||||||
____________________________
(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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Ammonia — Southern plains (dollars per ton) | $ | 500 | $ | 435 | $ | 520 | $ | 586 | |||||||
| Ammonia — Corn belt (dollars per ton) | 547 | 472 | 560 | 682 | |||||||||||
| UAN — Corn belt (dollars per ton) | 275 | 298 | 276 | 335 | |||||||||||
| Natural gas NYMEX (dollars per MMBtu) | $ | 2.32 | $ | 2.33 | $ | 2.21 | $ | 2.54 | |||||||
Q3 2024 Outlook
The table below summarizes our outlook for certain operational statistics and financial information for the third quarter of 2024. See “Forward-Looking Statements” above.
| Q3 2024 | |||||||
| Low | High | ||||||
| Ammonia utilization rates | |||||||
| Consolidated | 95 | % | 100 | % | |||
| Coffeyville Facility | 95 | % | 100 | % | |||
| East Dubuque Facility | 95 | % | 100 | % | |||
| Direct operating expenses (in millions)(1) | $ | 53 | $ | 58 | |||
| Capital expenditures (in millions)(2) | $ | 10 | $ | 15 | |||
____________________________
(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 June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 26,219 | $ | 59,857 | $ | 38,798 | $ | 161,727 | |||||||
| Interest expense, net | 7,510 | 6,919 | 15,175 | 14,093 | |||||||||||
| Income tax expense (benefit) | — | 2 | (25 | ) | 46 | ||||||||||
| Depreciation and amortization | 20,040 | 19,755 | 39,331 | 34,965 | |||||||||||
| EBITDA and Adjusted EBITDA | 53,769 | 86,533 | 93,279 | 210,831 | |||||||||||
| Current reserve for operating activities(1) | (8,485 | ) | (29,141 | ) | (16,970 | ) | (38,282 | ) | |||||||
| Current reserve for investing activities(2) | (25,171 | ) | (13,614 | ) | (35,884 | ) | (18,478 | ) | |||||||
| Available Cash for Distribution(3) (4) | $ | 20,113 | $ | 43,778 | $ | 40,425 | $ | 154,071 | |||||||
| Common units outstanding | 10,570 | 10,570 | 10,570 | 10,570 | |||||||||||
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(1) Includes reserves for debt service (interest expense) and other future operating needs.
(2) Includes reserves for future capital expenditures, including turnarounds, and other future investing activities, as well as cash impacts from equity method investments.
(3) Amount represents the cumulative available cash based on quarter-to-date and year-to-date results. However, Available Cash for Distribution is calculated quarterly, with distributions (if any) being paid in the quarter following declaration.
(4) The Partnership declared and paid a
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