Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (May 2012)
20 slides from Cvr Partners, Lp's investor presentation, May 11, 2012
Slide 1: Investor Presentation May, 2012
Investor Presentation May, 2012 Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor The following information contains forward-looking statements based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. You are cautio
Slide 3: Key Strategic Drivers
Key Strategic Drivers • Experienced management team • Fully utilized capacity • High run time rates • Strategically located assets • Solid market fundamentals supports future growth • Growth oriented partnership formed by CVR Energy, Inc. in June 2007, with IPO in April • Manufacturing facility prod
Slide 4: Experienced Management
Experienced Management
Slide 5: Fully Utilized Capacity & High Run Rates
Fully Utilized Capacity & High Run Rates (1) Adjusted for third-party outage.
Slide 6: Strategically Located Assets
Strategically Located Assets • Located in corn belt • 56% of corn planted in 2011 was within $40/UAN ton freight rate of plant • $25/ton transportation advantage to corn belt vs. U.S. Gulf Coast • No intermediate transfer, storage, barge freight or pipeline freight charges
Slide 7: Solid Market Fundamentals: Key Demand Drivers
Solid Market Fundamentals Key Demand Drivers
Slide 8: Solid Market Fundamentals: Consistent Fertilizer Demand Growth
Solid Market Fundamentals Consistent Fertilizer Demand Growth • Nitrogen represents ~63% of fertilizer consumption (1) • Nitrogen based fertilizers have most stable demand because must be applied annually – Primary determinant of crop yield (1) Per the International Fertilizer Industry Association.
Slide 9: Solid Market Fundamentals: Farmer Profitability Supports Fertilizer Price
Solid Market Fundamentals Farmer Profitability Supports Fertilizer Price • Corn consumes the largest amount of nitrogen fertilizer • Farmers are expected to generate substantial proceeds at currently forecasted corn prices • Farmer incentivized to use nitrogen at corn price much lower than current s
Slide 10: Market Fundamentals: Supply/Demand Supports Increased Planting
Market Fundamentals Supply/Demand Supports Increased Planting
Slide 11: UAN Demand & U.S. Imports
Country 2006 2007 2008 2009 2010 Solid Market Fundamentals UAN Demand & U.S. Imports UAN Demand/Supply Trinidad & Tobago Russia Canada Romania Egypt Lithuania Ukraine Poland Estonia Netherlands Bulgaria Germany Belarus Rest of world Total 2,005 3,036 2,395 1,166 2,466 U.S. Imports of UAN
Slide 12: Slide 12
Slide 13: UAN Expansion
UAN Expansion • Overview – Increase exposure to strong UAN market dynamics – Expand UAN capacity by 330K tons per year (~50%) to ~1MM tons/year – Upgrade 100% of ammonia to UAN – On-line in early 2013 • Total cost of $125MM-$130MM – $63MM spent through 03/31/12 • Annualized incremental impact – EBIT
Slide 14: Maximizing Yields: Net Sales, EBITDA and Capital Expenditures
.. Maximizing Yields Net Sales 2009 2010 ‘Seepage a bra covets ott came ESTOR EBITDA - Maint. CapEx (No Debt)®) Capital Expenditures 194 13.0 'g : ce tone ee tare! Hi Maintenance fy Growth /expenson 1494 2010 2011 2) Plantgate pce pe toncepresentsnetsaestestreght costs and hydeogen revenun tom hysro
Slide 15: Solid Start for 2012
2012 Q1 2011 Q1 Change Solid Start for 2012 Sales $78.3 $57.4 36.4% EBITDA (1) $36.8 $21.3 72.8% Operating Income $31.4 $16.8 86.9% Distributable Cash Flow (2) $38.2 n/a n/a DCF/Unit (2) $0.523 n/a n/a $US millions, except per unit data (1) See page 20 for a reconciliation of net income to EBITDA. (
Slide 16: A Bright Outlook
A Bright Outlook • Strong industry fundamentals • High-quality & strategically-located assets • Premium product focus • Attractive growth opportunities • Pay out 100% of available cash each quarter • No IDR’s • Experienced management team
Slide 17: Maximizing Yields
Maximizing Yields
Slide 18: Fertilizer Plant Schematic
Fertilizer Plant Schematic
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the actual results in accordance with U.S. generally accepted accounting principles (GAAP), for the applicable periods, the Company also uses certain non-GAAP financial measures as discussed below, which are adjusted for GAAP-based results. The use of non-GA
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA: EBITDA represents net income before the effect of interest expense, interest income, income tax expense (benefit) and depreciation and amortization. EBITDA is not a calculation based upon GAAP; however, the amounts included in EBITDA are derived from amounts inclu