CVR Partners, LP (UAN) Earnings

Management highlights

### Financial and Distribution Results - Declared a 2Q2026 distribution of $6.08 per common unit, payable August 17 to unit holders of record as of August 10. The distribution was funded by $64 million in excess cash after covering interest costs, maintenance capex, and required reserves. - Ended the quarter with $187 million in total liquidity: $137 million in cash and $50 million in available capacity under the ABL credit facility. Less than $1 million of the cash balance is tied to customer prepayments for future product delivery. ### Market and Demand Context - Elevated global nitrogen fertilizer prices in spring 2026 were driven by tightened global supplies from ongoing Middle East conflicts and disruptions affecting the Strait of Hormuz. Overall spring nitrogen demand was strong, with some late-quarter customer shift away from UAN due to its price premium relative to other nitrogen products. - USDA data reports 95.3 million planted corn acres (down 4% from 2025's record level, but still above 5-year averages) and 85.4 million planted soybean acres (up 5% year-over-year). Expected grain inventory carryout for both crops is lower than 2025, supporting recent increases in grain prices. - Structural natural gas supply issues in Europe are expected to persist for years, keeping international natural gas prices elevated relative to low-cost U.S. natural gas, creating a competitive advantage for U.S.-based nitrogen fertilizer producers like CVR Partners. ### Operational and Capital Project Updates - Completed summer fill programs for ammonia in late June 2026 and UAN in early July 2026, with a strong order book already in place for the second half of 2026 at attractive pricing. - Updated the Coffeyville facility feedstock diversification project: the company scrapped plans to source hydrogen from the adjacent refinery, and will instead convert the plant to use natural gas as an alternative feedstock to third-party pet coke. Detailed design and construction planning will be finalized in 2026, with total projected cost less than half of the original estimate. - Secured low-carbon production certification for Coffeyville's ammonia output, and is actively exploring market opportunities for low-carbon ammonia in the U.S. - A 5% ammonia production capacity brownfield expansion will be completed during the upcoming planned East Dubuque facility turnaround, alongside required water quality upgrade work. Additional planned projects include water system upgrades for Coffeyville and expansion of DEF production and loadout capacity. All projects are targeted at improving reliability and supporting long-term utilization above 95% of nameplate capacity (excluding turnaround downtime).

Guidance

- Full year 2026 total capital spending is guided to $85 million to $95 million, with maintenance capex expected to represent $49 million to $57 million of the total. Most growth and project capex will be funded from existing cash reserves built up in prior years. - 3Q2026 ammonia utilization is guided to 75% to 80%, due to the upcoming planned turnaround at the East Dubuque facility. - 3Q2026 direct operating expenses (excluding inventory and turnaround impacts) are guided to $57 million to $62 million, with standalone turnaround expenses expected to reach $30 million to $35 million. 3Q2026 total capital spending is guided to $40 million to $49 million. - The Coffeyville feedstock conversion project is expected to be completed in the second half of 2027, with no expected production downtime during implementation. Total project costs will remain within existing reserved capital for the initiative.

Segment performance

CVR Partners operates two core nitrogen fertilizer product segments, ammonia and UAN, for the 2Q2026 reporting period: - Ammonia: Total gross production was 214,000 tons, with 64,000 net tons available for sale. The company sold 54,000 tons at an average price of $791 per ton, representing a 33% year-over-year price increase compared to 2Q2025. Ammonia plant utilization hit 99% for the quarter. - UAN: Total production was 342,000 tons, with 333,000 tons sold at an average price of $392 per ton, representing a 24% year-over-year price increase compared to 2Q2025. Overall, total company net sales for 2Q2026 were $202 million, operating income was $85 million, net income was $78 million ($7.33 per common unit), and adjusted EBITDA was $107 million. Total sales volumes declined slightly year-over-year, driven by an earlier spring planting season shifting volume to 1Q2026 and late-quarter demand softening for UAN due to elevated prices.

Risks & headwinds

- Forward-looking statements are subject to material risks that could cause actual results to differ significantly from projections, including geopolitical instability, commodity price volatility, and project execution risks, as detailed in SEC filings. - Ongoing geopolitical conflicts (in Ukraine and the Middle East) create uncertainty for global nitrogen fertilizer and natural gas markets, with unclear duration for current supply tightness. - New nitrogen fertilizer production facility development carries high execution risk, large upfront capital requirements, and limited long-term pricing visibility, discouraging new industry investment under current market conditions. - Acquisition markets are challenging, with few attractive assets available for purchase, and political uncertainty creates headwinds for potential sale of the company. - The company's distribution amount varies quarterly based on operating performance, finished product price fluctuations, capital expenditure needs, and board-determined cash reserve requirements.

Analyst Q&A

• Q: Is CVR Partners still pursuing acquisitions, and what are the strategic criteria for any M&A activity? /

  A: Management states all options (acquisition, merger, project participation, or even sale of the company) remain on the table. The current acquisition market is challenging, with few attractive assets available for sale, and any deal would need to generate strong cash flow very quickly. The company may participate in new build projects as an operator or marketer, but will not act as a major financial backer. Political headwinds make a sale challenging in the current environment, and management is comfortable continuing operations as-is if no attractive opportunities emerge.

• Q: Can you share how much of your 2H2026 and 3Q2026 production was pre-sold through the summer fill programs? /

  A: Management declined to provide specific pre-sold volume percentages, but confirmed overall pre-sales are roughly in line with historical averages. The company noted demand slowed briefly in June when UAN traded at a wide premium, but buyers returned for the fill period, and ammonia has outperformed UAN on pricing recently. Management also highlighted that fall prepayments for ammonia came in earlier than in 2025.

• Q: What is the timeline, production impact, and updated cost estimate for the Coffeyville feedstock conversion project? /

  A: The project is now projected to finish in the second half of 2027, after accounting for current equipment delivery, permitting, and construction timelines. No full plant shutdown is required, so there is no expected negative impact to production volumes during implementation. After scope optimization that removed the need for a connection to the adjacent refinery's hydrogen facility, total project cost is now expected to be less than half of the original estimate, and will stay within the capital already reserved for the project.

• Q: Many producers have pulled back on new clean ammonia project development; what needs to change for the industry to get comfortable building new capacity? /

  A: Management notes new production facilities are extremely capital-intensive, with high execution risk and limited long-term pricing visibility, creating too much uncompensated risk for producers. For new projects to move forward, de-risking support like government backing, long-term customer off-take commitments, or third-party equity participation would reduce the burden of risk on producers. While these structures are possible, they take a long time to negotiate and are difficult to put in place currently.