Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (November 2019)
17 slides from Cvr Partners, Lp's investor presentation, Nov 20, 2019
Slide 1: CVR Partners, LP Investor Presentation November 2019
CVR Partners, LP Investor Presentation November 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 ~1.6MM tons of nitrogen products during LTM November 2019 - Structured as a publicly-traded master limited partnership • General Partner does not
Slide 4: Strategically Located Assets
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 ➢ New rail loading rack at Coffeyville increases logistics optionality
Slide 5: Key Operating Statistics
Key Operating Statistics Consistent high utilization at both facilities Consolidated Production Volumes Ammonia Utilization(1) Consolidated Feedstocks Costs(2) Consolidated Sales Revenue(2)(3) (1) Adjusted by planned turnarounds. (2) For the last twelve months ended September 30, 2019. 4 (3) Exclude
Slide 6: Solid Trends in Fertilizer Demand Growth
Solid Trends in Fertilizer Demand Growth Global and domestic demand for nitrogen remains strong Global nitrogen consumption increased by 15% Global Nitrogen Consumption between 2008 and 2018 driven by: 140 ➢ Population growth 130 ➢ Decrease in arable farmland per capita 120 110 ➢ Biofuel consumption
Slide 7: U.S Nitrogen Supply and Demand
U.S Nitrogen Supply and Demand Domestic supply and demand picture is more balanced Corn Stocks to Use Compared to Netback Fertilizer Pricing US Nitrogen Supply ➢ Nitrogen fertilizers represent approximately 15% of farmers’ cost structure and significantly improves yields ➢ YTD UAN prices increased $
Slide 8: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. Increasing corn consumption is positive for Nitrogen demand U.S. Domestic Corn Use ➢ Corn has a variety of uses and applications, 14.0 including feed grains, ethanol for fuel and 12.0 food, seed and industrial (FSI) 10.0 8.0 6.0 ➢ Feed grains 4.0 (Bushels (Bushels
Slide 9: CVR Partners' 2019 3Q Results
CVR Partners’ 2019 3Q Results YTD results have significantly improved versus 2018 Three Months Ended Nine Months Ended In millions, except product price at gate per ton and per unit data September 30, September 30, CVR Partners, L.P. 2019 2018 2019 2018 UAN Product Price Per Ton at Gate (1) $182 $17
Slide 10: Solid Financial Profile
Solid Financial Profile Ample liquidity and decreasing leverage with increased EBITDA Unaudited Selected Balance Sheet Data As of September 31, 2019 (in millions) Cash and Cash Equivalents $ 83.7 Working Capital $ 75.4 Total Assets $ 1,180.3 Total Debt $ 631.5 (1) Total Partners' Capital $ 452.4 Una
Slide 11: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses Primarily focused on maintenance spending East Dubuque Merger on 2019 Total Capex budget of $20M - $25M $30 April 1, 2016 $25 Environmental and Maintenance spending $20 planned at $18M - $20M $15 $M Growth capex budgeted at $2M - $5M $10 ➢ Growth capex bu
Slide 12: Key Investment Highlights
Key Investment Highlights ➢ Leading North American producer and distributor of nitrogen fertilizer products ➢ Experienced management team ➢ Early stages of recovery in the nitrogen fertilizer industry - Imports are down due to high input and logistics costs - Strong corn demand and lower stock to us
Slide 13: Management Team Experienced in Refining and Fertilizer Industries
Management Team Experienced in Refining and Fertilizer Industries Dave Lamp: Executive Chairman – 37 years Mark Pytosh: CEO & President – 32 years Tracy Jackson: CFO & EVP – 26 years Melissa Buhrig: EVP, General Counsel & Secretary – 19 years Neal Barkley: VP & Facility GM Coffeyville – 37 years Mar
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA represents net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense. Adjusted EBITDA represents EBITDA adjusted to exclude consolidated turnaround expense and other non-recurring items whi
Slide 16: Typical Farming Activities & Seasons
Typical Farming Activities & Seasons January-March April-June July-September October-December Dealer/Distributor Fill Dealer/Distributor Fill Dealer/Distributor Fill Season Orders & Wheat Spring Planting Orders Orders & Fall Planting Topdress Wheat Planting Crop No Planting Corn Planting Wheat Plant
Slide 17: Reconciliation of Net Income (Loss) to Adjusted EBITDA, Free Cash Flow and Cash Available for Distribution
Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA, Free Cash Flow and Cash Available for Distribution FY Ended December 31, Q4 Q1 Q2 Q3 LTM Q3 ($ in millions) 2015 2016 2017 2018 2018 2019 2019 2019 2019 Net Income (Loss) $ 62.0 $ (26.9) $ (72.8) $ (50.0) $ (1.4) $ (6.1) $ 19.0 $ (