Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (November 2018)
16 slides from Cvr Partners, Lp's investor presentation, Nov 14, 2018
Slide 1: CVR Partners, LP Investor Presentation November 2018
CVR Partners, LP Investor Presentation November 2018
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures Safe Harbor Statement The following presentation contains forward-looking statements based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Statements concerning current estimates, exp
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 ~1.5MM tons of nitrogen products during LTM September 2018 - Structured as a publicly-traded master limited partnership (variable distributions) •
Slide 4: Solid Trends In Fertilizer Demand Growth
Solid Trends In Fertilizer Demand Growth Global nitrogen consumption increased Global Nitrogen Consumption by 20% between 2005 and 2015 driven 250.0 by: 200.0 s e − Population growth n n o 150.0 T n o i l − Decrease in farmland per capita l i M 100.0 − Biofuel consumption 50.0 − Continued evolutio
Slide 5: 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 16,000 14,000 12,000 10,000 ) s n o t c 8,000 i r t e m n e 6,000 g o r t i n f 4,000 o s ’ 0 0 0 ( 2,000 0 • Estimated reduced corn stocks supports improving fundamentals for corn
Slide 6: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. U.S. Domestic Corn Use (Bushels in billions) Corn has variety of uses and 14 applications, including feed grains, 12 10 ethanol for fuel and food, seed and 8 industrial (FSI) 6 4 Feed grains 2 0 − ~96% of domestic feed grains are supplied by corn Feed / Residua
Slide 7: 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 New rail loading rack at Coffeyville increases optionality of customer markets due to greater access to BNSF delivery poin
Slide 8: Key Operating Statistics
Key Operating Statistics Coffeyville East Dubuque On-Stream Factors On-Stream Factors Consolidated Feedstocks Costs(1) Consolidated Sales Revenue(1) Urea Hydrogen Products 12% 7% Ammonia 25% Pet Coke 24% Natural Gas UAN 64% 68% (1) For the last twelve months ended September 30, 2018. 7 7
Slide 9: Solid Financial Profile
Solid Financial Profile Unaudited Selected Balance Sheet Data As of September 30, 2018 (in millions) Cash and Cash Equivalents $ 61.4 Working Capital $ 57.5 Total Assets $ 1,218.5 Total Debt $ 647.2 (1) Total Partners' Capital $ 501.2 Unaudited Selected Income Statement Data For the Twelve Months En
Slide 10: CVR Partners' 2018 Q3 and YTD Results
CVR Partners’ 2018 Q3 and YTD Results In millions, except product price at gate per ton and per unit data Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 UAN Product Price Per Ton at Gate (1) $170 $138 $169 $158 Ammonia Product Price Per Ton at Gate (1) $297 $214
Slide 11: Key Investment Highlights
Key Investment Highlights Leading North American producer and distributor of nitrogen fertilizer products Experienced management team Early stages of recovery in the nitrogen fertilizer industry - Imports are down due to high input and logistics costs - Strong corn demand and lower stock to us
Slide 12: Experienced Management Team
Experienced Management Team Dave Lamp: Executive Chairman – 37 years Mark Pytosh: CEO & President – 32 years Tracy Jackson: CFO & EVP – 26 years Melissa Buhrig: EVP, General Counsel & Secretary – 19 years Neal Barkley: VP & Facility GM Coffeyville – 37 years Marc Gilbertson: VP & Facility GM East Du
Slide 13: Appendix
Appendix
Slide 14: Farming Activities & Seasons
Farming Activities & Seasons January-March April-June July-September October-December Dealer/Distributor Fill Dealer/Distributor Fill Dealer/Distributor Fill Season Orders & Wheat Spring Planting Orders Orders & Fall Planting Topdress Wheat Planting Crop No Planting Corn Planting Wheat Planting (Sou
Slide 15: Annual Reconciliation of Net Income (Loss) to Adjusted EBITDA and Free Cash Flow
CVR Partners – Annual Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA and Free Cash Flow FY Ended December 31, Q4 Q1 Q2 Q3 LTM Q3 ($ in millions) 2014 2015 2016 2017 2017 2018 2018 2018 2018 Net Income (Loss) $ 76.1 $ 62.0 $ (26.9) $ (72.8) $ (27.4) $ (19.1) $ (16.5) $ (13.1) $ (
Slide 16: 2018 Q3/YTD Reconciliation of Net Income (Loss) to EBITDA and Cash Available for Distribution
CVR Partners – Unaudited 2018 Q3/YTD Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Cash Available for Distribution Three Months Ended Nine Months Ended September 30 September 30 ($ in millions) 2018 2017 2018 2017 Net Income (Loss) $ (13.1) $ (31.6) $ (48.7) $ (45.4) Interest ex