• Net Sales (Q4 2024): $140 million
• Net Income (Q4 2024): $18 million
• EBITDA (Q4 2024): $50 million
• Distribution (Q4 2024): $1.75 per common unit
• Net Sales (Full Year 2024): $525 million
• Net Income (Full Year 2024): $61 million or $5.76 per common unit
• EBITDA (Full Year 2024): $179 million
• Ammonia Utilization Rate (2024): 96%
• Ammonia Production (Q4 2024): 210,000 gross tonnes
• Ammonia Sales Price (Q4 2024): $475 per tonne
• UAM Production (Q4 2024): 310,000 tonnes
• UAM Sales Price (Q4 2024): $229 per tonne
• Direct Operating Expenses (Q4 2024): $56 million
• Capital Spending (Q4 2024): $18 million
• Total Liquidity (End of Q4 2024): $130 million

• Warning! GuruFocus has detected 7 Warning Sign with UAN.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CVR Partners LP (NYSE:UAN) reported strong financial results for the fourth quarter of 2024, with net sales of $140 million and net income of $18 million.
• The company achieved a high ammonia utilization rate of 96% for the year, with East Dubuque setting new records for ammonia production volumes.
• There was a significant improvement in safety metrics, with a 40% reduction in total recordable incident rate compared to 2023.
• The board declared a fourth-quarter distribution of $1.75 per common unit, reflecting strong cash generation and financial health.
• CVR Partners LP (NYSE:UAN) is exploring a dual-feedstock project at its Coffeyville facility, which could provide flexibility and cost advantages in feedstock usage.

Negative Points

• UAN sales volumes were down approximately 3% in the fourth quarter, partly due to challenging weather conditions.
• UAN prices declined by approximately 5% relative to the prior year period, impacting revenue potential.
• The company faces geopolitical risks that could affect the nitrogen fertilizer industry, particularly due to production capacities in volatile regions.
• There are concerns about potential tariffs on foreign fertilizer imports, which could disrupt supply and increase prices in the US.
• Natural gas prices in Europe remain high, posing challenges for global supply and demand balance, which could affect CVR Partners LP (NYSE:UAN)'s operations.

Q & A Highlights

Q: Have you seen any changes in customer ordering patterns with the Fed lowering short-term interest rates over the last couple of quarters? A: Mark Pytosh, CEO: We haven't seen any real change in that pattern. The 100 basis points reduction wasn't enough to change customers' views on inventory levels, so we're still seeing more rateable buying, consistent over the last six to seven months.

Q: Regarding the Coffeeville project, is the dual fuel project still a potential 2026 event? A: Mark Pytosh, CEO: If approved by the board, we plan to start construction this year to have the option to choose feedstock by the end of the year. We would make decisions over months, not days or weeks, regarding the use of pet coke or natural gas.

Q: Can you provide insight into market trends, particularly regarding UAN demand and ammonia inventories? A: Mark Pytosh, CEO: Urea is tight globally, lifting both UAN and ammonia prices. Customers are buying more urea for spring, and there's limited availability, which has tightened the market. We expect greater corn acreage in the spring, leading to stronger demand for all nitrogen products.

Q: Has there been a trend towards more UAN versus ammonia usage? A: Mark Pytosh, CEO: There's no significant trend towards more UAN usage. It often depends on relative pricing at a given time. Ammonia looks slightly cheaper compared to UAN and urea, but there may be a pickup in UAN and urea usage in the spring for what wasn't applied in the fall.

Q: How should CapEx, excluding turnaround reserves, look for the balance of the year? A: Dane Neumann, CFO: For 2025, we don't expect a substantial change in reserves. The higher CapEx profile for growth projects has already been reserved, and we will continue to reserve at a comparable level.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.