CVR PARTNERS, LP Q4 FY2024 earnings call

• Financial highlights: Q4 2024 net sales $140M, net income $18M, EBITDA $50M; full year 2024 EBITDA $179M, distributions $6.76 per common unit.
• Operations: 2024 had a 40% reduction in total recordable incident rate. Q4 2024 ammonia utilization 96%, producing 210,000 gross tons. UAN production 310,000 tons sold at $229/ton. East Dubuque had 102% ammonia utilization and 399,000 tons ammonia production in 2024.
• Capital spending: Q4 2024 capital spending $18M (maintenance), full year 2024 $37M (30M maintenance). 2025 maintenance CapEx estimated $35-$45M, growth CapEx $20-$25M.
• Distributions: Board declared Q4 2024 distribution of $1.75 per common unit, paid March 10, 2025.
• Projects: Coffeyville facility has detailed engineering studies for dual fuel (natural gas/petcoke) project. Debottlenecking projects to improve reliability and production rates. Installed new boilers in Coffeyville in Q4 2024. Planning nitrous oxide abatement unit at Coffeyville in fall 2025 turnaround.

For the fourth quarter of 2024, net sales were $140 million, net income was $18 million, and EBITDA was $50 million. For the full year 2024, net sales were $525 million, operating income was $90 million, net income was $61 million (or $5.76 per common unit), and EBITDA was $179 million. In the fourth quarter of 2024, ammonia production was 210,000 gross tons (80,000 net tons available for sale) with an annual utilization rate of 96%. UAN production was 310,000 tons, sold at an average price of $229 per ton. Ammonia was sold at an average price of $475 per ton, with sales volumes in line with Q4 2023 for ammonia and down ~3% for UAN due to weather. The ammonia utilization rate for the full year 2024 was 96%, with East Dubuque achieving a 102% utilization rate and producing ~399,000 tons of ammonia. Revenue contributions aren't explicitly broken down by product segment in terms of percentage, but net sales and EBITDA are provided for the overall company.

• Q1 2025: Ammonia utilization rate expected to be between 95% and 100%. Direct operating expenses expected to be $55 to $65 million excluding inventory impacts. Total capital spending expected to be between $12 and $16 million.
• 2025: Maintenance capital spending estimated $35 to $45 million, growth capital spending $20 to $25 million. Significant portion of growth capital spending to be funded from reserved cash over past two years.

• Geopolitical risks: Middle East and Ukraine conflicts could impact energy and fertilizer markets. Potential tariffs on foreign fertilizer and energy imports, particularly Canadian products.
• Natural gas: Europe has drawn down natural gas inventories more than expected, with concerns about replenishment before winter 2025. Europe's ammonia production costs are high, leading to potential supply constraints.
• Pet coke: While pet coke prices have softened in the US, future changes could affect costs.

Q: Have you seen any changes in customer ordering patterns with the Fed lowering short-term rates?

A: We have not seen any real change in customer ordering patterns. Still seeing more ratable buying.

Q: Timing of the Coffeyville dual fuel project?

A: If approved by the board, construction would start this year to have the option to choose feedstock by year-end for 2026.

Q: Market trends, impact of UAN demand due to higher urea prices, UAN and ammonia inventories, and trends towards UAN vs ammonia?

A: Urea is tight globally, lifting UAN and ammonia prices. Customers are seeing more corn acreage, leading to stronger demand for nitrogens. UAN looks attractive, and there may be a pickup in UAN and urea in spring for unfulfilled fall orders.

Q: CapEx excluding turnaround reserves for the balance of 2025?

A: Expect no substantial change in reserves. Growth projects' balance has already been reserved, and reserves will continue at a comparable level.