Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (March 2013)
21 slides from Cvr Partners, Lp's investor presentation, Mar 25, 2013
Slide 1: Investor Presentation
Investor Presentation March 2013
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 Growth-oriented partnership formed by CVR Energy, Inc. in June 2007 … IPO in April 2011 General Partner has non-economic interest (no IDRs or management fees) Manufacturing facility produces ammonia and urea ammonium nitrate (UAN) Facility located in Coffeyville, Kansas … now p
Slide 4: Solid Market Fundamentals: Key Demand Drivers
Solid Market Fundamentals Key Demand Drivers
Slide 5: Solid Market Fundamentals: Consistent Fertilizer Demand Growth
Solid Market Fundamentals Consistent Fertilizer Demand Growth Nitrogen represents ~63% of fertilizer consumption(1) Nitrogen fertilizers have the most stable demand because must be applied annually Primary determinant of crop yield (1) Per the International Fertilizer Industry Association.
Slide 6: 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 spot Ni
Slide 7: Solid Market Fundamentals: Supply/Demand Supports Significant Planting
Solid Market Fundamentals Supply/Demand Supports Significant Planting (1) Excludes recently announced or other potential significant capacity additions.
Slide 8: Solid Market Fundamentals: Excess Demand Driving Imports of UAN
Solid Market Fundamentals Excess Demand Driving Imports of UAN U.S. imports for UAN were 28% of estimated total U.S. demand in 2012 (1) Excludes recently announced or other potential significant capacity additions.
Slide 9: Environmental, Health & Safety
IVP Environmental, Health & Safety
Slide 10: Fully Utilized Capacity & High Run Rates
Fully Utilized Capacity & High Run Rates (1) Adjusted for third-party outage. 2012 not shown as included biennial plant turnaround in October 2012. Next turnaround scheduled for 2014 Q4.
Slide 11: Strategically Located Assets
Strategically Located Assets Located in Corn Belt 54% of corn planted in 2012 was within $45/UAN ton freight rate of plant ~$15/UAN ton transportation advantage to Corn Belt vs. U.S. Gulf Coast
Slide 12: Multiple Growth Opportunities
Multiple Growth Opportunities Operational efficiency Plant expansion Specialty products Distribution Mergers and acquisitions New plant development
Slide 13: UAN Plant Expansion
UAN Plant Expansion Completed in March 2013 Overview Increased exposure to strong UAN market dynamics Ability to upgrade 100% of ammonia to UAN Expanded UAN capacity by ~50% to ~1MM tons/year Total cost of $130MM Annualized incremental impact EBITDA: ~$18MM Available for distribution: ~$0.25/unit
Slide 14: History of Financial Success
History of Financial Success
Slide 15: Significant Growth in 2013
Significant Growth in 2013 Seeing solid product pricing for first half of year Have orders in place for substantial amount of product tons well into the second quarter Full year also to benefit from UAN plant expansion, no turnaround, and partial settlement of property tax dispute Expect Distributio
Slide 16: Strong Financial Profile
Strong Financial Profile ($US millions) Capitalization As of 12/31/12 Cash & Equivalents $127.8 Credit Facility due April 2016: Term Loan 125.0 $25 million Revolver –- Total Debt $125.0 Partners’ Equity 446.2 Total Capitalization (Book) $571.2 LTM EBITDA(1) $136.6 LTM Interest Expense(1) 3.8 Key Cre
Slide 17: A Bright Outlook
A Bright Outlook Strong industry fundamentals High-quality & strategically-located assets Premium product focus Attractive growth opportunities Experienced management team Pay out 100% of available cash each quarter No IDRs or management fees for General Partner
Slide 18: Appendix
Appendix
Slide 19: Fertilizer Plant Schematic
Fertilizer Plant Schematic
Slide 20: 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 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 included in the