CVR Partners (UAN) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 net sales were $140 million, net income $18 million ($1.73 per unit), and EBITDA $50 million; full-year EBITDA reached $179 million with distributions of $6.76 per common unit.

• Full-year 2024 net income was $61 million ($5.76 per unit) and EBITDA $179 million on $525 million sales, down from $172 million net income and $281 million EBITDA on $681 million sales in 2023.

• Ammonia utilization rate for 2024 was 96%, with East Dubuque achieving a record 102% and 399,000 tons produced.

• Safety metrics improved, with a 40% reduction in total recordable incident rate year-over-year.

• Declared Q4 2024 cash distribution of $1.75/unit, totaling $6.76/unit for 2024.

Financial highlights

• Q4 2024 operating income was $26 million, net income $18 million ($1.73 per unit), and EBITDA $50 million; full-year operating income was $90 million.

• Q4 2024 fertilizer sales were $126 million; full-year fertilizer sales were $472 million.

• Direct operating expenses for Q4 were $56 million; excluding inventory and turnaround, expenses declined by $3 million year-over-year.

• Q4 2024 available cash for distribution was $18 million; full-year available cash for distribution was $72 million.

• Cash and equivalents at year-end 2024 were $91 million, up from $45 million at year-end 2023.

Outlook and guidance

• Ammonia utilization rate for Q1 2025 expected between 95% and 100%.

• Q1 2025 direct operating expenses projected at $52–$65 million; capital spending at $12–$16 million.

• 2025 maintenance capital spending estimated at $35–$45 million, growth capital at $20–$25 million.

• Strong demand for nitrogen fertilizer anticipated for spring 2025, with corn acreage expected to increase by 2–4 million acres year-over-year.

• Market conditions for spring 2025 are favorable, with tight supply/demand and rising nitrogen fertilizer prices.