Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (September 2022)
17 slides from Cvr Partners, Lp's investor presentation, September 2022
Slide 1: Investor Presentation
Investor Presentation September 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements (“FLS”) based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. The assumptions and estimates underlying FLS are inherently uncertain and are subject to a wid
Slide 3: Key Investment Highlights
Key Investment Highlights ➢ CVR Partners, LP (NYSE: UAN) is a leading North American producer and distributor of nitrogen fertilizer products ▪ Delivered over 1.4 million tons of nitrogen fertilizer products during LTM June 2022 ▪ Structured as a publicly-traded master limited partnership with a var
Slide 4: Positive Trends in Fertilizer Supply & Demand
Positive Trends in Fertilizer Supply & Demand Corn Stocks to Use U.S. Nitrogen Supply ➢ Fertilizers typically represent approximately 15% ➢ Major global nitrogen capacity build cycle largely of farmers’ cost structure and significantly improve complete in 2017/2018, and additional tons have yields.
Slide 5: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. ➢ Corn has a variety of uses and applications, U.S. Domestic Corn Use including feed grains, ethanol for fuel, and food, seed and industrial (FSI) ➢ Feed grains ▪ ~96% of domestic feed grains are supplied by corn ▪ Consumes ~39% of annual corn crop(1) Domestic Corn
Slide 6: Domestic Nitrogen Fertilizer Market Conditions
Domestic Nitrogen Fertilizer Market Conditions ➢ NOLA UAN fill price $280 - $285/ton for Q3 shipment. ➢ Producer turnarounds at multiple plants in the Midwest, as many 2020 turnarounds were delayed Summer to the summer due to COVID-19. ➢ Commodity prices remained strong, with corn prices ranging fro
Slide 7: Strategically Located Assets
Strategically Located Assets ➢ Large geographic footprint serving the Southern Plains and Corn Belt region ➢ Well positioned to minimize distribution costs and maximize net East Dubuque, IL back pricing ➢ Rail loading rack at Coffeyville Coffeyville, KS provides significant logistics optionality wes
Slide 8: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization(2) Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(3) (1) For the last twelve months ended June 30, 2022. (2) Adjusted for planned turnarounds. 7 (3) Excludes freight.
Slide 9: Net Sales Trends Increasing
Net Sales Trends Increasing Consolidated Sales Volumes Net Sales ($ millions) Ammonia and UAN Market Pricing(1) Natural Gas and Pet Coke Feedstock Pricing(1) TO BE UPDATED (1) Information used within this chart was obtained from Green Markets (a Bloomberg Company) for ammonia and UAN market pricing.
Slide 10: 2Q 2022 Results
2Q 2022 Results Adjusted EBITDA(1) and Adjusted EBITDA Margin Cash Distributions per Unit UAN Product Pricing at Gate(2) Ammonia Product Pricing at Gate(2) (1) Excludes $41 million non-cash goodwill impairment in 2Q 2020. See reconciliation on page 16. 9 (2) Represents net sales less freight revenue
Slide 11: Improving Business Environment
Improving Business Environment ➢ We expect to see ammonia utilization greater than Product Pricing Trends(1) 95% following the completion of the planned turnarounds in Q3 2022. ▪ Q2 2022 Coffeyville Facility utilization was negatively impacted by a power outage and an outage at the third-party air s
Slide 12: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 2022 Total Capex budget of $44M - $47M $50 Environmental and Maintenance spending estimated at $40 $43M - $45M. $30 Growth capex estimated at $1M - $2M. $M $20 $10 $0 2017 2018 2019 2020 2021 2022e Maintenance Growth 2022 Turnaround spending estimated at
Slide 13: Highlighting our Commitment to ESG
Highlighting our Commitment to ESG Environmental Social ➢ Mitigated over 1 million metric tons of carbon dioxide ➢ Diversity is key component of our Mission & Values equivalents (CO2e) per year in 2021 ➢ Site-Level Community Impact Committees steer local ➢ Manufactured hydrogen and ammonia qualifyin
Slide 14: Appendix
APPENDIX
Slide 15: Typical Farming Activities & Seasons
Typical Farming Activities & Seasons • January-March April-June July-September October-December Dealer/Distributor Fill Dealer/Distributor Fill Dealer/Distributor Fill Season Orders & Wheat Spring Planting Orders Orders & Fall Planting Topdress Wheat Planting Crop No Planting Corn Planting Wheat Pla
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA represents net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense. Adjusted EBITDA represents EBITDA adjusted for certain significant non-cash items and items that management believes ar
Slide 17: Reconciliation of Consolidated Net Income (Loss) to EBITDA, Adjusted EBITDA and Available Cash for Distribution
Reconciliation of Consolidated Net Income (Loss) to EBITDA, Adjusted EBITDA and Available Cash for Distribution (In USD Millions) CVR Partners, LP 2017 2018 2019 2020 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 TTM Net Income (loss) $ (73) $ (50) $ (35) $ (98) $ 78 $ 35 $ 61 $ 94 $ 118 $ 308 Add: Interest
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