Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (June 2021)
21 slides from Cvr Partners, Lp's investor presentation, Jun 2, 2021
Slide 1: CVR Partners, LP Corporate Presentation June 2021
CVR Partners, LP Corporate Presentation June 2021
Slide 2: Forward Looking Statements; Safe Harbor
1 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 estimates underlying FLS are inherently uncertain and are s
Slide 3: Company Overview
Company Overview
Slide 4: CVR Partners is a leading North American producer of nitrogen fertilizer
3 ➢ CVR Partners, LP (NYSE: UAN) is a leading North American producer and distributor of nitrogen fertilizer products ▪ Delivered ~1.6MM tons of nitrogen products during LTM March 2021 ▪ Structured as a publicly-traded master limited partnership • Non-economic General Partner with no Incentive Distr
Slide 5: Stable Long-Term Trends in Fertilizer Demand
4 Stable Long-Term Trends in Fertilizer Demand Global and Domestic Demand for Nitrogen Remains Steady Source: Fertecon, World Bank Global Nitrogen Consumption Global Arable Land per Capita Global nitrogen consumption increased by 15% between 2009 and 2020 driven by: ➢ Population growth ➢ Decrease in
Slide 6: U.S. Nitrogen Fertilizer Supply & Demand
5 U.S. Nitrogen Fertilizer Supply & Demand Domestic Supply and Demand Picture is Currently More Balanced ➢ Fertilizers represent approximately 15% of farmers’ cost structure and significantly improves yields ➢ USDA projecting stocks to use ratio for 2020/2021 at approximately 9%, its lowest level si
Slide 7: Strong Demand for Corn in the U.S.
6 Strong Demand for Corn in the U.S. Increasing Corn Consumption is Positive for Nitrogen Fertilizer Demand ➢ Corn has a variety of uses and applications, including feed grains, ethanol for fuel and food, seed and industrial (FSI) ➢ Feed grains ▪ ~96% of domestic feed grains are supplied by corn ▪ C
Slide 8: Corn and fertilizer pricing outlook
➢ USDA estimates of 91 million corn acres planted and yields of 172 bushels per acre imply a carryout of 9.2%, the lowest since 2014 ➢ Corn prices continued to increase, reaching over $7/bu driven by strong Chinese and domestic ethanol demand and poor South American crop conditions ➢ High grain pric
Slide 9: Strategically Located Assets Well-Positioned in Premium Pricing Regions
8 Strategically Located Assets Well-Positioned in Premium Pricing Regions ➢ Large geographic footprint serving the Southern Plains and Corn Belt region ➢ Well positioned to minimize distribution costs and maximize net back pricing ➢ Rail loading rack at Coffeyville provides significant logistics opt
Slide 10: Sound Customer Base
9 Sound Customer Base Diversified Customer Base Underpins High Utilization Distribution Channel (% of Net UAN Sales) Customer Diversification (% of Net Sales) ➢ Retailers and distributors are the main customers for UAN products ▪ Retailers and distributors accounted for 90% and 10%, respectively, of
Slide 11: Key Operating Statistics
10 Key Operating Statistics Consistent High Utilization at Both Company-owned Facilities Consolidated Production Volumes(1) Ammonia Utilization(2) Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(3) (1) For the last twelve months ended March 31, 2021. (2) Adjusted for planned turnaround
Slide 12: Net Sales Expected to Increase
$0 $100 $200 $300 $400 $500 $600 $700 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 $ p e r T o n Ammonia - Corn Belt Ammonia - Southern Plains UAN - Corn Belt $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 P e t C o k e ( $ p e r T o n ) N a
Slide 13: 2021 1Q Results Primed to Rebound from 2020
12 CVR Partners’ 2021 1Q Results Primed to Rebound from 2020 Based on Current Pricing and Demand Trends Adjusted EBITDA Margin Ammonia Product Pricing at Gate(2) Adjusted EBITDA(1) UAN Product Pricing at Gate(2) (1) Excludes $41 million non-cash goodwill impairment in 2Q 2020. See reconciliation on
Slide 14: Improving Business Environment
13 (1) Data collected from Green Markets (a Bloomberg Company) for ammonia and UAN market pricing. (2) Direct operating expenses are exclusive of depreciation and amortization, turnaround expenses and impacts of inventory adjustments. Improving Business Environment High Utilization and Improving Rea
Slide 15: Capital Expenditures and Turnaround Expenses
14 Capital Expenditures and Turnaround Expenses Primarily Focused on Maintenance Spending Note: As of December 31, 2020 ➢ Shifted to a 3-year turnaround schedule from the previous 2-year schedule to progress reliability efforts ➢ Maintenance work completed during unplanned downtime at Coffeyville in
Slide 16: ESG: Environmental, Social, Governance
Governance SocialEnvironmental ➢ Consolidated Criteria Pollutant (CP) Emissions reduced by 20% from 2015 to 2019 ➢ Nitrous oxide abatement and CO2 sequestration efforts have enabled mitigation of over 1mm metric tons of CO2e per year ➢ Manufactured hydrogen and ammonia qualifying as “blue” with carb
Slide 17: Management Team Experienced in Refining and Fertilizer Industries
16 Management Team Experienced in Refining and Fertilizer Industries Mark Pytosh* President & Chief Executive Officer ➢ Mr. Pytosh has served as Chief Executive Officer and President of the general partner since May 2014, as a director since 2011, and as Executive Vice President of CVR Energy since
Slide 18: Appendix
Appendix
Slide 19: Typical Farming Activities & Seasons
18 Typical Farming Activities & Seasons January-March April-June July-September October-December Season Dealer/Distributor Fill Orders & Wheat Topdress Spring Planting Dealer/Distributor Fill Orders Dealer/Distributor Fill Orders & Fall Planting Crop No Planting Corn Planting Wheat Planting (Souther
Slide 20: 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 net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (i
Slide 21: Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Available Cash
20 Reconciliation of Consolidated Net Income (Loss) to EBITDA, Adjusted EBITDA and Available Cash for Distribution ($ in Millions) CVR Partners, LP 2016 2017 2018 2019 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 TTM Net Income (loss) (27)$ (73)$ (50)$ (35)$ (98)$ (42)$ (19)$ (17)$ (25)$ (103)$ Add: Interes