Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Investor Presentation (September 2012)
21 slides from Cvr Partners, Lp's investor presentation, Sep 19, 2012
Slide 1: Investor Presentation September 2012
Investor Presentation September 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 2011 • Manufacturing facility produces
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: 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: 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: Supply/Demand Supports Increased Planting
Solid Market Fundamentals Supply/Demand Supports Increased Planting -4,000 -2,000 2,000 4,000 6,000 8,000 10,000 12,000 16,000 2012E 2016E 2020E Production Imports Exports Consumption U.S. Nitrogen Production & Consumption Source: Fertecon. 14,000 Planted Yield Yield Trendline U.S. Corn Planted & Yi
Slide 11: UAN Demand & U.S. Imports
Country 2007 2008 2009 2010 2011 Solid Market Fundamentals UAN Demand & U.S. Imports Trinidad & Tobago 1,010 Russia Canada Romania Egypt Lithuania Ukraine Poland Estonia Netherlands Bulgaria Germany Belarus Rest of world Total 3,347 2,641 1,285 2,718 3,853 U.S. Imports of UAN (000’s of UAN Tons) U.S
Slide 12: Growth Strategies
Growth Strategies Current 12-24 Months 3-5 Years Operational efficiency Plant expansion Specialty products Distribution Mergers and acquisitions Plant development
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 at beginning of 2013 Total cost of $125MM-$130MM – $78MM spent through 06/30/12 Annualized incremental impact – EBI
Slide 14: Financial Statistics
Financial Statistics See page 21 for a reconciliation of net income to EBITDA. See page 21 for a reconciliation of net income to EBITDA less maintenance capital.
Slide 15: Solid Start for 2012
YTD 6/30/12 YTD 6/30/11 Change Solid Start for 2012 Sales $159.7 $138.1 15.6% EBITDA (1) $78.1 $65.4 19.4% Adjusted EBITDA (2) $82.1 $70.9 15.8% Operating Income $67.5 $56.1 20.3% Distributable Cash Flow (3) $82.0 $29.7 n/a DCF/Unit (3) $1.123 $0.407 n/a $US millions, except per unit data Expect DCF
Slide 16: Strong Financial Profile
Strong Financial Profile Financial Flexibility to Support Growth Initiatives (US$ in millions) Capitalization As of 6/30/12 Cash & Equivalents $196.4 Credit Facility due April 2016 Term Loan 125.0 $25 million Revolver Total Debt $125.0 Partners' Equity 477.1 Total Capitalization $602.1 LTM EBITDA (1
Slide 17: 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 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
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