Q2 2024 CVR Partners LP Earnings Call Transcript
Key Points
- CVR Partners LP (UAN) reported net sales of $133 million and net income of $26 million for the second quarter of 2024.
- The company achieved an EBITDA of $54 million and declared a distribution of $1.90 per common unit.
- Facilities ran well with consolidated ammonia plant utilization of 102%, producing 221,000 gross tons of ammonia and 337,000 tons of UAN.
- Strong demand for ammonia and UAN was observed during the spring planting season, with better-than-expected pricing for UAN fill and ammonia fall prepay ordering.
- The company ended the quarter with total liquidity of $98 million, including $48 million in cash and $50 million in availability under the ABL facility.
- Prices for ammonia and UAN declined by 26% and 15% respectively compared to the second quarter of 2023.
- Direct operating expenses for the second quarter were $47 million, with an increase in expected direct operating expenses for the third quarter to be between $53 million and $58 million.
- Capital spending for 2024 is estimated to be between $40 million and $43 million, with a significant portion allocated to maintenance capital.
- The company anticipates higher than historical volatility in the business due to geopolitical risks and structural natural gas market issues in Europe.
- Grain prices have softened recently, with December corn prices at approximately $4.10 per bushel and November soybeans at approximately $10.35 per bushel, impacting farmer economics.
Greetings, and welcome to the CVR Partners Second-Quarter 2024 Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session, will follow the formal presentation. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Richard Roberts, Vice President of FP&A and Investor Relations. Thank you, sir. You may begin.
Thank you Christine. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, our Chief Executive Officer; Dane Neumann, our Chief Financial Officer; and other members of management.
Prior to discussing our 2024 second quarter results let me remind you that this conference call may contain forward-looking statements as that term is defined under Federal Securities Laws. For this purpose, any statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements. You
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