SUGAR LAND, Texas, Oct. 28, 2024 (GLOBE NEWSWIRE) — Cvr Partners, LP (NYSE: UAN, “CVR Partners” or the “Partnership”), a leading manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products, has announced its financial results for the third quarter of 2024, demonstrating a robust performance. The report highlights a net income of $4 million, or 36 cents per common unit, and an impressive EBITDA of $36 million. These figures are based on net sales of $125 million for Q3 2024. When comparing these results to the third quarter of 2023, which showed a net income of $1 million, or 7 cents per common unit, and an EBITDA of $32 million on net sales of $131 million, CVR Partners showcases a clear year-over-year improvement in key profitability metrics.
Mark Pytosh, Chief Executive Officer of CVR Partners, commented on the strong operational outcomes. “CVR Partners delivered strong operating results for the third quarter of 2024, underpinned by our commitment to safe and reliable operations, achieving a combined ammonia production rate of 97 percent,” Pytosh stated. He further noted the positive market conditions, “Harvest is nearing completion, and we have seen strong ammonia demand for fall application.”
Pytosh also addressed the favorable pricing environment in the nitrogen fertilizer market, crucial for CVR Partners and its financial health. “Nitrogen fertilizer prices have shown a positive reset compared to 2023, driven by robust customer demand and favorable farmer economics,” he explained. This pricing strength directly benefits CVR Partners and its ability to generate value for its partners. “Our focus remains on generating free cash flow, and we are pleased to announce a third quarter 2024 cash distribution of $1.19 per common unit,” Pytosh concluded, emphasizing the direct returns to CVR Partners unitholders.
Operational Performance Highlights for CVR Partners
CVR Partners’ operational efficiency remained a key driver of its performance in Q3 2024. While production slightly decreased compared to the same period in 2023, the company maintained a high level of output and optimized its product mix. In the third quarter of 2024, CVR Partners’ fertilizer facilities produced a combined 212,000 tons of ammonia. Of this total, 61,000 net tons were available for sale in the market, while the majority was upgraded into higher-value fertilizer products, specifically 321,000 tons of urea ammonia nitrate (UAN).
In comparison, during the third quarter of 2023, the production facilities generated a combined 217,000 tons of ammonia. Out of this, 68,000 net tons were available for sale, and a larger volume of 358,000 tons of UAN was produced. This slight shift in production mix in Q3 2024 reflects CVR Partners’ adaptive strategy to meet market demands and optimize profitability.
Looking at pricing, CVR Partners benefited from improved average realized gate prices in Q3 2024. UAN prices saw a 3 percent increase to $229 per ton, and ammonia prices rose significantly by 9 percent to $399 per ton compared to the third quarter of 2023. In Q3 2023, average realized gate prices for UAN and ammonia were $223 and $365 per ton, respectively. This pricing improvement underscores the strong market conditions for nitrogen fertilizers and CVR Partners’ ability to capitalize on these trends, enhancing returns for CVR Partners.
Distribution Announcement: Delivering Value to CVR Partners Unitholders
CVR Partners is committed to delivering value directly to its unitholders. In line with this commitment, CVR Partners announced a significant cash distribution for the third quarter of 2024. On October 28, 2024, the Board of Directors of the Partnership’s general partner declared a cash distribution of $1.19 per common unit. This distribution will be paid on November 18, 2024, to common unitholders of record as of November 8, 2024.
As a variable distribution master limited partnership, CVR Partners’ distribution policy is designed to reflect the company’s financial performance and market conditions. Distributions can vary from quarter to quarter, influenced by factors such as operating performance, fluctuations in fertilizer prices, maintenance capital expenditures, and strategic cash management decisions made by the Board. This variable distribution model allows CVR Partners to adapt to changing market dynamics while prioritizing consistent returns for its investors over the long term.
Earnings Conference Call Information for CVR Partners Investors
CVR Partners is dedicated to transparent communication with its investors and partners. To provide a deeper insight into the Q3 2024 results and discuss the company’s outlook, CVR Partners hosted its third quarter 2024 Earnings Conference Call on Tuesday, October 29, at 11 a.m. Eastern Time. This call offered a platform to discuss not only the financial results but also key developments, forward-looking information, and other material aspects relevant to CVR Partners’ business and financial status.
For those interested in accessing the details of the call, a replay is available. The third quarter 2024 Earnings Conference Call was webcast live and is archived for 14 days on the Investor Relations section of CVR Partners’ website at www.CVRPartners.com. Additionally, a repeat of the call can be accessed for 14 days by dialing (877) 660-6853, conference ID 13749243. This earnings call and subsequent replay serve as valuable resources for investors and analysts seeking comprehensive information about CVR Partners and its performance.
Conclusion: CVR Partners Demonstrates Financial Strength
In summary, CVR Partners’ third quarter of 2024 results reflect a period of solid financial and operational performance. The company successfully increased its net income and EBITDA compared to the previous year, driven by efficient operations and favorable market conditions in the nitrogen fertilizer sector. The announced cash distribution of $1.19 per common unit further underscores CVR Partners’ commitment to delivering tangible value to its unitholders. With a focus on operational reliability and strategic market responsiveness, CVR Partners is well-positioned to continue its strong performance and maintain its standing as a key player in the fertilizer industry, offering valuable opportunities for CVR partners and investors alike.
