Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (May 2019)
16 slides from Cvr Partners, Lp's investor presentation, May 14, 2019
Slide 1: CVR Partners, LP Investor Presentation May 2019
CVR Partners, LP Investor Presentation May 2019
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures Forward Looking Statements; Safe Harbor 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 estimat
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 ~1.4MM tons of nitrogen products during LTM March 2019 - Structured as a publicly-traded master limited partnership • General Partner does not rec
Slide 4: Attractive Market Position
Attractive Market Position ◼ Large geographic footprint serving the Southern Plains and Corn Belt region ◼ Well positioned to minimize distribution costs and maximize net back pricing ◼ New rail loading rack at Coffeyville increases logistics optionality due to access to both UP and BNSF delivery po
Slide 5: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes Ammonia Utilization(1) Ammonia (gross produced) Ammonia (net avail. for sale) UAN 100% Coffeyville East Dubuque Consolidated 1,400 95% 94% 94% 94% 1,200 95% 92% 91% 1,000 90% 800 600 85% Thousand Thousand tons 400 %of Capacity 80% 200 0 75% 20
Slide 6: Solid Trends In Fertilizer Demand Growth
Solid Trends In Fertilizer Demand Growth ◼ Global nitrogen consumption increased by 15% Global Nitrogen Consumption between 2008 and 2018 driven by: 140 − Population growth 130 120 − Decrease in arable farmland per capita 110 100 − Biofuel consumption 90 − Continued evolution to more protein-based M
Slide 7: U.S. Nitrogen Supply & Demand
U.S. Nitrogen Supply & Demand Corn Stocks to Use Compared to Net Back Fertilizer Pricing U.S. Nitrogen Supply & Demand $700 30% 16,000 Stocks to Use $600 Ammonia Net Back Price 14,000 UAN Net Back Price $500 12,000 20% $400 16% 10,000 14% 13% 13% 12% $300 12% 8,000 9% 8% 10% $200 7% 6,000 4,000 $100
Slide 8: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. U.S. Domestic Corn Use 14.0 ◼ Corn has a variety of uses and applications, 12.0 including feed grains, ethanol for fuel and 10.0 food, seed and industrial (FSI) 8.0 6.0 ◼ Feed grains 4.0 (Bushels (Bushels billions) in 2.0 − ~96% of domestic feed grains are supplied
Slide 9: Solid Financial Profile
Solid Financial Profile Unaudited Selected Balance Sheet Data As of March 31, 2019 (in millions) Cash and Cash Equivalents $ 96.6 Working Capital $ 67.3 Total Assets $ 1,247.0 Total Debt $ 629.8 (1) Total Partners' Capital $ 480.2 Unaudited Selected Income Statement Data For the Twelve Months Ended
Slide 10: CVR Partners' 2019 Q1 Results
CVR Partners’ 2019 Q1 Results In millions, except product price at gate per ton and per unit data Three Months Ended March 31, 2019 2018 UAN Product Price Per Ton at Gate (1) $222 $153 Ammonia Product Price Per Ton at Gate (1) $367 $322 Net Sales $91.9 $79.9 Net Income (Loss) ($6.1) ($19.1) EBITDA (
Slide 11: Key Investment Highlights
Key Investment Highlights ◼ Leading North American producer and distributor of nitrogen fertilizer products ◼ Experienced management team ◼ Early stages of recovery in the nitrogen fertilizer industry - Imports are down due to high input and logistics costs - Strong corn demand and lower stock to us
Slide 12: Management Team Experienced in Refining and Fertilizer Industries
Management Team Experienced in Refining and Fertilizer Industries Dave Lamp: Executive Chairman – 37 years Mark Pytosh: CEO & President – 32 years Tracy Jackson: CFO & EVP – 26 years Melissa Buhrig: EVP, General Counsel & Secretary – 19 years Neal Barkley: VP & Facility GM Coffeyville – 37 years Mar
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA represents net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense. Adjusted EBITDA represents EBITDA adjusted to exclude consolidated turnaround expense and other non-recurring items whi
Slide 15: Typical Farming Activities & Seasons
Typical Farming Activities & Seasons January-March April-June July-September October-December Dealer/Distributor Fill Dealer/Distributor Fill Dealer/Distributor Fill Season Orders & Wheat Spring Planting Orders Orders & Fall Planting Topdress Wheat Planting Crop No Planting Corn Planting Wheat Plant
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA, Free Cash Flow and Cash Available for Distribution
Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA, Free Cash Flow and Cash Available for Distribution FY Ended December 31, Q2 Q3 Q4 Q1 LTM Q1 ($ in millions) 2015 2016 2017 2018 2018 2018 2018 2019 2019 Net Income (Loss) $ 62.0 $ (26.9) $ (72.8) $ (50.0) $ (16.4) $ (13.1) $ (1.4)