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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CVR Partners LP | NYSE:UAN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.36 | 1.71% | 80.75 | 81.23 | 78.56 | 79.25 | 27,668 | 01:00:00 |
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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2018
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OR
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¨
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
to
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Delaware
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56-2677689
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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2277 Plaza Drive, Suite 500
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Sugar Land, Texas
(Address of principal executive offices)
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77479
(Zip Code)
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Page No.
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2023 Notes
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$645.0 million aggregate principal amount of 9.25% Senior Notes due 2023, which were issued through CVR Partners and CVR Nitrogen Finance Corporation.
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ABL Credit Facility
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The Partnership's senior secured asset based revolving credit facility with a group of lenders and UBS AG, Stamford Branch, as administrative agent and collateral agent.
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ammonia
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Ammonia is a direct application fertilizer and is primarily used as a building block for other nitrogen products for industrial applications and finished fertilizer products.
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capacity
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Capacity is defined as the throughput a process unit is capable of sustaining, either on a calendar or stream day basis. The throughput may be expressed in terms of maximum sustainable, nameplate or economic capacity. The maximum sustainable or nameplate capacities may not be the most economical. The economic capacity is the throughput that generally provides the greatest economic benefit based on considerations such as feedstock costs, product values and downstream unit constraints.
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Coffeyville Facility
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CVR Partners' nitrogen fertilizer manufacturing facility located in Coffeyville, Kansas.
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common units
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Common units representing limited partner interests of CVR Partners.
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corn belt
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The primary corn producing region of the United States, which includes Illinois, Indiana, Iowa, Minnesota, Missouri, Nebraska, Ohio and Wisconsin.
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CVR Energy
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CVR Energy, Inc., a publicly traded company listed on the New York Stock Exchange under the ticker symbol "CVI," which indirectly owns our general partner and the common units owned by Coffeyville Resources, LLC.
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CVR Partners
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CVR Partners, LP.
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CVR Refining
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CVR Refining, LP, a publicly traded limited partnership listed on the New York Stock Exchange under the ticker symbol "CVRR," which through its subsidiaries, currently owns and operates a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma and ancillary businesses.
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East Dubuque Facility
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CVR Partners' nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois.
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farm belt
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Refers to the states of Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Texas and Wisconsin.
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general partner
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CVR GP, LLC, our general partner, which is a wholly-owned subsidiary of Coffeyville Resources, LLC.
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MMBtu
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One million British thermal units: a measure of energy. One Btu of heat is required to raise the temperature of one pound of water one degree Fahrenheit.
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MSCF
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One thousand standard cubic feet, a customary gas measurement.
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netback
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Netback represents net sales less freight revenue divided by product sales volume in tons. Netback is also referred to as product pricing at gate.
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on-stream
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Measurement of the reliability of the gasification, ammonia and UAN units, defined as the total number of hours operated by each unit divided by the total number of hours in the reporting period.
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Partnership
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CVR Partners, LP.
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pet coke
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Petroleum coke - a coal-like substance that is produced during the oil refining process.
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product pricing at gate
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Product pricing at gate represents net sales less freight revenue divided by product sales volume in tons. Product pricing at gate is also referred to as netback.
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southern plains
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Primarily includes Oklahoma, Texas and New Mexico.
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ton
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One ton is equal to 2,000 pounds.
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turnaround
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A periodically required standard procedure to refurbish and maintain a facility that involves the shutdown and inspection of major processing units.
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UAN
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UAN is an aqueous solution of urea and ammonium nitrate used as a fertilizer.
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March 31, 2018
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December 31, 2017
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(unaudited)
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(in thousands, except unit data)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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61,111
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$
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49,173
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Accounts receivable, net of allowance for doubtful accounts of $53 and $28 at March 31, 2018 and December 31, 2017, respectively
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14,948
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9,855
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Inventories
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57,793
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54,097
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Prepaid expenses and other current assets, including $356 and $315 with affiliates at March 31, 2018 and December 31, 2017, respectively
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5,249
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5,793
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Total current assets
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139,101
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118,918
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Property, plant, and equipment, net of accumulated depreciation
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1,054,941
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1,069,526
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Goodwill
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40,969
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40,969
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Other long-term assets
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4,484
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4,863
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Total assets
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$
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1,239,495
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$
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1,234,276
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LIABILITIES AND PARTNERS’ CAPITAL
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Current liabilities:
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Accounts payable, including $2,319 and $2,223 due to affiliates at March 31, 2018 and December 31, 2017, respectively
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$
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24,046
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$
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23,518
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Personnel accruals, including $993 and $1,521 with affiliates at March 31, 2018 and December 31, 2017, respectively
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5,267
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8,240
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Deferred revenue
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24,229
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12,895
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Accrued expenses and other current liabilities, including $939 and $3,221 with affiliates at March 31, 2018 and December 31, 2017, respectively
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26,002
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11,442
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Total current liabilities
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79,544
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56,095
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Long-term liabilities:
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Long-term debt, net of current portion
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626,648
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625,904
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Other long-term liabilities
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2,501
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2,424
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Total long-term liabilities
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629,149
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628,328
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Commitments and contingencies
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Partners’ capital:
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Common unitholders, 113,282,973 units issued and outstanding at March 31, 2018 and December 31, 2017
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530,801
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549,852
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General partner interest
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1
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1
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Total partners’ capital
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530,802
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549,853
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Total liabilities and partners’ capital
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$
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1,239,495
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$
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1,234,276
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Three Months Ended
March 31, |
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2018
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2017
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(unaudited)
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(in thousands, except per unit data)
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Net sales
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$
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79,859
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$
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85,321
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Operating costs and expenses:
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Cost of materials and other — Affiliates
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2,038
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2,146
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Cost of materials and other — Third parties
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20,259
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19,591
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22,297
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21,737
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Direct operating expenses (exclusive of depreciation and amortization) — Affiliates
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840
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832
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Direct operating expenses (exclusive of depreciation and amortization) — Third parties
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38,055
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35,078
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38,895
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35,910
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Depreciation and amortization
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16,426
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15,412
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Cost of sales
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77,618
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73,059
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Selling, general and administrative expenses — Affiliates
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3,370
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3,886
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Selling, general and administrative expenses — Third parties
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2,292
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3,028
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5,662
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6,914
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Total operating costs and expenses
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83,280
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79,973
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Operating income (loss)
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(3,421
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)
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5,348
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Other income (expense):
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Interest expense and other financing costs
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(15,726
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)
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(15,706
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)
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Interest income
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16
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3
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Other income, net
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43
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42
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Total other expense
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(15,667
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)
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(15,661
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)
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Loss before income tax
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(19,088
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)
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(10,313
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)
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Income tax expense (benefit)
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(37
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)
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23
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Net loss
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$
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(19,051
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)
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$
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(10,336
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)
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Net loss per common unit — basic and diluted
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$
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(0.17
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)
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$
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(0.09
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)
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Weighted-average common units outstanding — basic and diluted
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113,283
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113,283
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Common Units
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General
Partner
Interest
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Total
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|||||||||
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Issued
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Amount
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|||||||||
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(unaudited)
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(in thousands, except unit data)
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Balance at December 31, 2017
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113,282,973
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$
|
549,852
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$
|
1
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$
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549,853
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Net loss
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—
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|
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(19,051
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)
|
|
—
|
|
|
(19,051
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)
|
|||
Balance at March 31, 2018
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113,282,973
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|
|
$
|
530,801
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$
|
1
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|
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$
|
530,802
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|
|
Three Months Ended
March 31, |
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2018
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2017
|
||||
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|
||||
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(unaudited)
|
||||||
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(in thousands)
|
||||||
Cash flows from operating activities:
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|
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|
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Net loss
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$
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(19,051
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)
|
|
$
|
(10,336
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)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
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|
||||
Depreciation and amortization
|
16,426
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|
|
15,412
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|
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Allowance for doubtful accounts
|
25
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|
|
3
|
|
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Amortization of deferred financing costs and original issue discount
|
806
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|
|
735
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|
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Loss on disposition of fixed assets
|
54
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|
|
13
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|
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Share-based compensation – Affiliates
|
110
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|
516
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|
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Share-based compensation
|
170
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|
|
167
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|
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Change in assets and liabilities:
|
|
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|
||||
Accounts receivable
|
(4,419
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)
|
|
(1,194
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)
|
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Inventories
|
(1,605
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)
|
|
(3,106
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)
|
||
Prepaid expenses and other current assets
|
549
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|
|
685
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|
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Other long-term assets
|
188
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|
|
178
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|
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Accounts payable
|
(786
|
)
|
|
(1,372
|
)
|
||
Deferred revenue
|
10,635
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|
|
19,315
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|
||
Accrued expenses and other current liabilities
|
11,307
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|
|
9,016
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|
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Other long-term liabilities
|
77
|
|
|
23
|
|
||
Net cash provided by operating activities
|
14,486
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|
|
30,055
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|
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Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(2,720
|
)
|
|
(4,112
|
)
|
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Proceeds from sale of assets
|
172
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|
|
—
|
|
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Net cash used in investing activities
|
(2,548
|
)
|
|
(4,112
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)
|
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Net increase in cash and cash equivalents
|
11,938
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|
|
25,943
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|
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Cash and cash equivalents, beginning of period
|
49,173
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|
|
55,595
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|
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Cash and cash equivalents, end of period
|
$
|
61,111
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|
|
$
|
81,538
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|
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Supplemental disclosures:
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|
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Cash paid for income taxes, net of refunds (received)
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$
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(4
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)
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|
$
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—
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|
Non-cash investing and financing activities:
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|
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Construction in progress additions included in accounts payable
|
$
|
2,203
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$
|
2,181
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Change in accounts payable related to construction in progress additions
|
$
|
1,314
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|
$
|
(1,690
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)
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March 31, 2018
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||||||||||
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As Reported
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Balances without adoption of ASC 606
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Effect of Change
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(in thousands)
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Assets
|
|
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|
||||||
Accounts receivable
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$
|
14,948
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$
|
14,249
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|
|
$
|
699
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Liabilities
|
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Deferred revenue
|
$
|
24,229
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|
$
|
23,530
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|
|
$
|
699
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Three Months Ended
March 31, 2018 |
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(in thousands)
|
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Ammonia
|
$
|
11,597
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UAN
|
52,763
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Urea products
|
4,911
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Fertilizer sales net at gate
|
69,271
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Freight revenue
|
8,739
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Other revenue
|
1,849
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|
|
Total net sales
|
$
|
79,859
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|
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Three Months Ended
March 31, 2018 |
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||
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(in thousands)
|
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Balance at January 1, 2018
|
$
|
34,270
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|
Add:
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|
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New prepay contracts entered into during the period
|
3,418
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|
|
Less:
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|
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Revenue recognized that was included in the contract liability balance at the beginning of the period
|
11,565
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|
Revenue recognized related to contracts entered into during the period
|
1,763
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|
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Other changes
|
131
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|
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Balance at March 31, 2018
|
$
|
24,229
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|
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Phantom Units
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Weighted-Average
Grant Date Fair Value |
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Non-vested at January 1, 2018
|
1,188,206
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|
$
|
4.35
|
|
Granted
|
18,262
|
|
|
3.29
|
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|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(23,320
|
)
|
|
4.26
|
|
|
Non-vested at March 31, 2018
|
1,183,148
|
|
|
$
|
4.34
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
Finished goods
|
$
|
17,311
|
|
|
$
|
13,594
|
|
Raw materials and precious metals
|
6,329
|
|
|
6,333
|
|
||
Parts and supplies
|
34,153
|
|
|
34,170
|
|
||
Total inventories
|
$
|
57,793
|
|
|
$
|
54,097
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
Land and improvements
|
$
|
13,092
|
|
|
$
|
13,092
|
|
Buildings and improvements
|
17,068
|
|
|
16,990
|
|
||
Machinery and equipment
|
1,352,573
|
|
|
1,352,573
|
|
||
Automotive equipment
|
599
|
|
|
599
|
|
||
Furniture and fixtures
|
1,607
|
|
|
1,582
|
|
||
Railcars
|
16,261
|
|
|
16,261
|
|
||
Construction in progress
|
13,233
|
|
|
9,659
|
|
||
|
1,414,433
|
|
|
1,410,756
|
|
||
Less: Accumulated depreciation
|
359,492
|
|
|
341,230
|
|
||
Total property, plant and equipment, net
|
$
|
1,054,941
|
|
|
$
|
1,069,526
|
|
•
|
common units; and
|
•
|
a general partner interest, which is not entitled to any distributions, and which is held by the general partner.
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
Property taxes
|
$
|
2,071
|
|
|
$
|
1,493
|
|
Accrued interest
|
17,635
|
|
|
2,683
|
|
||
Railcar maintenance accruals
|
1,469
|
|
|
678
|
|
||
Affiliates (1)
|
939
|
|
|
3,221
|
|
||
Other accrued expenses and liabilities
|
3,888
|
|
|
3,367
|
|
||
Total accrued expenses and other current liabilities
|
$
|
26,002
|
|
|
$
|
11,442
|
|
(1)
|
Accrued expenses and other current liabilities include amounts owed by the Partnership to CVR Energy under the shared services agreement. Refer to
Note 13 ("Related Party Transactions")
for additional discussion.
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
9.250% senior secured notes, due 2023
|
$
|
645,000
|
|
|
$
|
645,000
|
|
6.500% notes, due 2021
|
2,240
|
|
|
2,240
|
|
||
Total long-term debt, before debt issuance costs and discount
|
647,240
|
|
|
647,240
|
|
||
Less:
|
|
|
|
||||
Unamortized discount
|
12,988
|
|
|
13,457
|
|
||
Unamortized debt issuance costs
|
7,604
|
|
|
7,879
|
|
||
Total long-term debt, net of current portion
|
$
|
626,648
|
|
|
$
|
625,904
|
|
|
Operating
Leases
|
|
Unconditional
Purchase
Obligations
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
Nine months ending December 31, 2018
|
$
|
3,569
|
|
|
$
|
20,230
|
|
Year Ending December 31,
|
|
|
|
||||
2019
|
4,164
|
|
|
15,752
|
|
||
2020
|
3,625
|
|
|
8,127
|
|
||
2021
|
3,442
|
|
|
6,482
|
|
||
2022
|
3,141
|
|
|
6,676
|
|
||
Thereafter
|
1,780
|
|
|
45,424
|
|
||
|
$
|
19,721
|
|
|
$
|
102,691
|
|
|
March 31, 2018
|
||
|
|
||
|
(in thousands, except weighted average rate)
|
||
MMBtus under fixed-price contracts
|
600
|
|
|
MMBtus under index-price contracts (1)
|
440
|
|
|
Total MMBtus under contracts
|
1,040
|
|
|
Commitments to purchase natural gas
|
$
|
2,428
|
|
Weighted average rate per MMBtu (2)
|
$
|
2.33
|
|
(1)
|
Indexed rates were estimated using the monthly index rate of the applicable index.
|
(2)
|
Weighted average rate per MMBtu is based on the fixed rates and the indexes applicable to each contract, exclusive of transportation costs.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in thousands)
|
||||||
Direct operating expenses (exclusive of depreciation and amortization) — Affiliates
|
$
|
616
|
|
|
$
|
610
|
|
Selling, general and administrative expenses — Affiliates
|
2,863
|
|
|
3,152
|
|
||
Total
|
$
|
3,479
|
|
|
$
|
3,762
|
|
•
|
statements, other than statements of historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future;
|
•
|
statements relating to future financial or operational performance, future distributions, future capital sources and capital expenditures; and
|
•
|
any other statements preceded by, followed by or that include the words "anticipates," "believes," "expects," "plans," "intends," "estimates," "projects," "could," "should," "may" or similar expressions.
|
•
|
our ability to make cash distributions on the common units;
|
•
|
the volatile nature of our business and the variable nature of our distributions;
|
•
|
the ability of our general partner to modify or revoke our distribution policy at any time;
|
•
|
the cyclical nature of our business;
|
•
|
the seasonal nature of our business;
|
•
|
the dependence of our operations on a few third-party suppliers, including providers of transportation services and equipment;
|
•
|
our reliance on pet coke that we purchase from CVR Refining;
|
•
|
our reliance on the natural gas and electricity that we purchase from third parties;
|
•
|
the supply and price levels of essential raw materials;
|
•
|
the risk of a material decline in production at our nitrogen fertilizer plants;
|
•
|
potential operating hazards from accidents, fire, severe weather, floods or other natural disasters;
|
•
|
competition in the nitrogen fertilizer businesses;
|
•
|
capital expenditures and potential liabilities arising from environmental laws and regulations;
|
•
|
existing and proposed environmental laws and regulations, including those relating to climate change, alternative energy or fuel sources, and the end-use and application of fertilizers;
|
•
|
new regulations concerning the transportation of hazardous chemicals, risks of terrorism and the security of chemical manufacturing facilities;
|
•
|
the risk of security breaches;
|
•
|
our lack of asset diversification;
|
•
|
our dependence on significant customers;
|
•
|
the potential loss of our transportation cost advantage over our competitors;
|
•
|
our partial dependence on customer and distributor transportation of purchased goods;
|
•
|
our potential inability to successfully implement our business strategies, including the completion of significant capital programs;
|
•
|
our reliance on CVR Energy’s senior management team and conflicts of interest they face operating each of CVR Partners, CVR Refining and CVR Energy;
|
•
|
the risk of labor disputes and adverse employee relations;
|
•
|
risks relating to our relationships with CVR Energy and CVR Refining;
|
•
|
control of our general partner by CVR Energy;
|
•
|
our ability to continue to license the technology used in our operations;
|
•
|
restrictions in our debt agreements;
|
•
|
changes in our treatment as a partnership for U.S. federal income or state tax purposes;
|
•
|
instability and volatility in the capital and credit markets; and
|
•
|
CVR Energy and its affiliates may compete with us.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
Consolidated Statements of Operations Data:
|
|
|
|
||||
Net sales
|
$
|
79.9
|
|
|
$
|
85.3
|
|
|
|
|
|
||||
Cost of materials and other – Affiliates
|
2.0
|
|
|
2.2
|
|
||
Cost of materials and other – Third parties
|
20.3
|
|
|
19.6
|
|
||
|
22.3
|
|
|
21.8
|
|
||
Direct operating expenses – Affiliates (1)
|
0.8
|
|
|
0.8
|
|
||
Direct operating expenses – Third parties (1)
|
38.1
|
|
|
35.1
|
|
||
|
38.9
|
|
|
35.9
|
|
||
Depreciation and amortization
|
16.4
|
|
|
15.4
|
|
||
Cost of sales
|
77.6
|
|
|
73.1
|
|
||
|
|
|
|
||||
Selling, general and administrative expenses – Affiliates
|
3.4
|
|
|
3.9
|
|
||
Selling, general and administrative expenses – Third parties
|
2.3
|
|
|
3.0
|
|
||
|
5.7
|
|
|
6.9
|
|
||
Operating income (loss)
|
(3.4
|
)
|
|
5.3
|
|
||
Interest expense and other financing costs
|
(15.7
|
)
|
|
(15.7
|
)
|
||
Other income, net
|
—
|
|
|
0.1
|
|
||
Total other expense
|
(15.7
|
)
|
|
(15.6
|
)
|
||
Loss before income tax expense
|
(19.1
|
)
|
|
(10.3
|
)
|
||
Income tax expense
|
—
|
|
|
—
|
|
||
Net loss
|
$
|
(19.1
|
)
|
|
$
|
(10.3
|
)
|
|
|
|
|
||||
EBITDA (2)*
|
$
|
13.0
|
|
|
$
|
20.8
|
|
Adjusted EBITDA (2)*
|
$
|
13.0
|
|
|
$
|
20.8
|
|
Available cash for distribution (3)*
|
$
|
(4.2
|
)
|
|
$
|
1.8
|
|
|
|
|
|
||||
Reconciliation to net sales:
|
|
|
|
||||
Fertilizer sales net at gate
|
$
|
69.3
|
|
|
$
|
76.0
|
|
Freight in revenue
|
8.7
|
|
|
7.1
|
|
||
Other
|
1.9
|
|
|
2.2
|
|
||
Total net sales
|
$
|
79.9
|
|
|
$
|
85.3
|
|
|
As of
March 31, 2018 |
|
As of
December 31, 2017 |
||||
|
|
|
(audited)
|
||||
|
(in millions)
|
||||||
Balance Sheet Data:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
61.1
|
|
|
$
|
49.2
|
|
Working capital
|
59.6
|
|
|
62.8
|
|
||
Total assets
|
1,239.5
|
|
|
1,234.3
|
|
||
Total debt, net of current portion
|
626.6
|
|
|
625.9
|
|
||
Total partners’ capital
|
530.8
|
|
|
549.9
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
Cash Flow Data:
|
|
|
|
||||
Net cash flow provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
14.5
|
|
|
$
|
30.0
|
|
Investing activities
|
(2.6
|
)
|
|
(4.1
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
11.9
|
|
|
$
|
25.9
|
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
||||
Maintenance capital expenditures
|
$
|
2.3
|
|
|
$
|
4.0
|
|
Growth capital expenditures
|
0.4
|
|
|
0.1
|
|
||
Total capital expenditures
|
$
|
2.7
|
|
|
$
|
4.1
|
|
(1)
|
Direct operating expenses are shown exclusive of depreciation and amortization.
|
(2)
|
EBITDA is defined as net income (loss) before (i) interest (income) expense, (ii) income tax expense and (iii) depreciation and amortization expense.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
Net loss
|
$
|
(19.1
|
)
|
|
$
|
(10.3
|
)
|
Add:
|
|
|
|
||||
Interest expense and other financing costs, net
|
15.7
|
|
|
15.7
|
|
||
Income tax expense
|
—
|
|
|
—
|
|
||
Depreciation and amortization
|
16.4
|
|
|
15.4
|
|
||
EBITDA and Adjusted EBITDA
|
$
|
13.0
|
|
|
$
|
20.8
|
|
(3)
|
The board of directors of our general partner has a policy to calculate available cash for distribution starting with Adjusted EBITDA. For the
three
months ended
March 31, 2018
and
2017
, available cash for distribution equaled our Adjusted EBITDA reduced for cash needed for (i) net cash interest expense (excluding capitalized interest) and debt service and other contractual obligations; (ii) maintenance capital expenditures; and (iii) to the extent applicable, major scheduled turnaround expenses and reserves for future operating or capital needs that the board of directors of the general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, at the discretion of the board of directors of our general partner, and available cash is increased by the business interruption insurance proceeds. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in millions, except units and per unit data)
|
||||||
Adjusted EBITDA
|
$
|
13.0
|
|
|
$
|
20.8
|
|
Adjustments:
|
|
|
|
||||
Net cash interest expense (excluding capitalized interest) and debt service
|
(14.9
|
)
|
|
(15.0
|
)
|
||
Maintenance capital expenditures
|
(2.3
|
)
|
|
(4.0
|
)
|
||
Available cash for distribution
|
$
|
(4.2
|
)
|
|
$
|
1.8
|
|
Distribution declared, per common unit
|
$
|
—
|
|
|
$
|
0.02
|
|
Common units outstanding (in thousands)
|
113,283
|
|
|
113,283
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Key Operating Statistics:
|
|
|
|
||||
Consolidated sales (thousand tons):
|
|
|
|
||||
Ammonia
|
36.1
|
|
|
61.9
|
|
||
UAN
|
345.3
|
|
|
321.6
|
|
||
Consolidated product pricing at gate (dollars per ton) (1):
|
|
|
|
||||
Ammonia
|
$
|
322
|
|
|
$
|
308
|
|
UAN
|
$
|
153
|
|
|
$
|
160
|
|
Consolidated production volume (thousand tons):
|
|
|
|
||||
Ammonia (gross produced) (2)
|
199.2
|
|
|
219.2
|
|
||
Ammonia (net available for sale) (2)
|
58.9
|
|
|
80.0
|
|
||
UAN
|
339.3
|
|
|
341.9
|
|
||
Feedstock:
|
|
|
|
||||
Petroleum coke used in production (thousand tons)
|
118.2
|
|
|
132.6
|
|
||
Petroleum coke used in production (dollars per ton)
|
$
|
18
|
|
|
$
|
14
|
|
Natural gas used in production (thousands of MMBtu) (3)
|
1,850.3
|
|
|
2,091.2
|
|
||
Natural gas used in production (dollars per MMBtu) (3) (4)
|
$
|
3.24
|
|
|
$
|
3.41
|
|
Natural gas in cost of materials and other (thousands of MMBtu) (3)
|
1,257.7
|
|
|
1,476.0
|
|
||
Natural gas in cost of materials and other (dollars per MMBtu) (3) (4)
|
$
|
3.48
|
|
|
$
|
3.59
|
|
Coffeyville Facility on-stream factors (5):
|
|
|
|
||||
Gasification
|
100.0
|
%
|
|
98.9
|
%
|
||
Ammonia
|
99.8
|
%
|
|
98.5
|
%
|
||
UAN
|
99.2
|
%
|
|
96.8
|
%
|
||
East Dubuque Facility on-stream factors (5):
|
|
|
|
||||
Ammonia
|
86.7
|
%
|
|
99.6
|
%
|
||
UAN
|
87.0
|
%
|
|
98.2
|
%
|
||
|
|
|
|
||||
Market Indicators:
|
|
|
|
||||
Ammonia - Southern plains (dollars per ton)
|
$
|
382
|
|
|
$
|
387
|
|
Ammonia - Corn belt (dollars per ton)
|
$
|
427
|
|
|
$
|
424
|
|
UAN - Corn belt (dollars per ton)
|
$
|
210
|
|
|
$
|
215
|
|
Natural gas - NYMEX (dollars per MMBtu)
|
$
|
2.85
|
|
|
$
|
3.06
|
|
(1)
|
Product pricing at gate represents net sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
|
(2)
|
Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
|
(3)
|
The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expenses (exclusive of depreciation and amortization).
|
(4)
|
The cost per MMBtu excludes derivative activity, when applicable. The impact of natural gas derivative activity during the periods presented was not material.
|
(5)
|
On-stream factor is the total number of hours operated divided by the total number of hours in the reporting period and is included as a measure of operating efficiency.
|
|
Price
Variance
|
|
Volume
Variance
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
UAN
|
$
|
(1.3
|
)
|
|
$
|
4.3
|
|
Ammonia
|
$
|
0.9
|
|
|
$
|
(8.3
|
)
|
Year
|
|
Percentage
|
2019
|
|
104.625%
|
2020
|
|
102.313%
|
2021 and thereafter
|
|
100.000%
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
Net cash flow provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
14.5
|
|
|
$
|
30.0
|
|
Investing activities
|
(2.6
|
)
|
|
(4.1
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
11.9
|
|
|
$
|
25.9
|
|
|
*
|
Filed herewith.
|
†
|
Furnished herewith.
|
|
|
CVR Partners, LP
|
|
|
|
|
|
|
|
By:
|
CVR GP, LLC, its general partner
|
|
|
|
|
April 26, 2018
|
|
By:
|
/s/ DAVID L. LAMP
|
|
|
|
Chairman of the Board of Directors, Executive Chairman
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
April 26, 2018
|
|
By:
|
/s/ MARK A. PYTOSH
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
April 26, 2018
|
|
By:
|
/s/ SUSAN M. BALL
|
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
1 Year CVR Partners Chart |
1 Month CVR Partners Chart |
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