CVR Partners, LP Q3 FY2025 earnings call

• Financial highlights: Net sales of $164 million, net income of $43 million, EBITDA of $71 million, and a third quarter distribution of $4.02 per common unit declared. - Plant utilization: Ammonia plant utilization was 95% with some planned and unplanned downtime. - Capital spending: $13 million spent in Q3 2025, with total 2025 capital spending estimated at $58 million to $65 million. - Harvest: Harvest on schedule, USDA estimates corn yields at 187 bushels per acre and soybeans at 54 bushels per acre. - Geopolitical impacts: Nitrogen fertilizer inventories tight due to elevated demand and reduced supply from domestic and international outages. - Turnaround: Planned turnaround at Coffeyville facility, with expected delay due to ammonia release, and East Dubuque facility turnaround planned for Q3 2026. - Projects: Coffeyville natural gas feedstock project in detailed engineering, debottlenecking projects at plants to improve reliability and production rates.

For the third quarter of 2025, net sales were $164 million. UAN sales: approximately 328,000 tons at an average price of $348 per ton. Ammonia sales: approximately 48,000 tons at an average price of $531 per ton. Consolidated ammonia plant utilization was 95%. Combined ammonia production for the quarter was 208,000 gross tons, with 59,000 net tons available for sale and UAN production was 337,000 tons.

• Fourth quarter 2025: Ammonia utilization rate expected between 80% and 85% due to Coffeyville turnaround. - Operating expenses: Excluding inventory and turnaround impacts, expected between $58 million and $63 million. - Capital spending: Total expected between $30 million and $35 million, with turnaround expense between $15 million and $20 million.

• Geopolitical conflicts: Ukraine targeting nitrogen fertilizer plants and export infrastructure in Russia impacting inventory levels. - Potential tariffs: Tariffs on Russian fertilizer imports could significantly impact pricing. - Weather: Europe's natural gas inventories refilled at lower than normal levels with risk of prices moving higher if winter is cooler than expected.

Q: Could you go back to the Coffeyville natural gas feedstock project? When do you anticipate it to start and talk about total cost and returns?

A: Not ready to talk final cost and returns yet, in detailed engineering, combination project to replace feedstock and bring additional hydrogen for potential 8% increase in production capacity.

Q: Any concerns about drought conditions impacting ammonia runs?

A: Not in markets where they're placed, harvest near completion, good conditions with moisture, expecting good fall ammonia run.

Q: Impact of acreage being down on sales?

A: Corn acreage might not drop as much due to trade concerns, inventory tight, lower acreage likely won't impact much in 2026.

Q: Impact of Trinidad and Russia imports?

A: No impact seen on Russian imports, fear of tariffs/sanctions could affect supply.

Q: Outlook for price of ammonia, UAN, urea into fourth quarter?

A: Solid quarter, pricing higher in fourth quarter vs Q3, optimistic about supply-demand balance for first half of 2026