CVR Partners LP Reports Strong Q4 and 2024 Results

CVR Partners LP ( (UAN) ) has released its Q4 earnings. Here is a breakdown of the information CVR Partners LP presented to its investors.

CVR Partners, LP, based in Sugar Land, Texas, is a manufacturing company specializing in nitrogen fertilizer products, primarily producing ammonia and urea ammonium nitrate (UAN) solutions, which are extensively used by farmers to enhance crop yield and quality.

For the fourth quarter of 2024, CVR Partners reported a net income of $18 million, or $1.73 per common unit, and EBITDA of $50 million on net sales of $140 million. This marks an increase from the previous year’s fourth quarter net income of $10 million and EBITDA of $38 million. For the full year 2024, the company reported net income of $61 million, which is a decrease from the $172 million reported in 2023, reflecting a challenging year with net sales declining to $525 million from $681 million in 2023.

The company’s operational highlights include a robust ammonia utilization rate of 96% for the year, contributing to the production of 836,000 tons of ammonia. Despite a decline in average realized gate prices for UAN and ammonia, which fell by 20% and 16% respectively compared to 2023, the company maintained strong production volumes. The fourth quarter also saw an increase in ammonia and UAN prices compared to the third quarter of 2024, indicating a strong demand and favorable market conditions.

Looking ahead, CVR Partners plans to maintain high plant utilization rates and focus on generating free cash flow. The company declared a fourth quarter cash distribution of $1.75 per common unit, reflecting its commitment to returning value to shareholders. The management remains optimistic about the tight supply-demand dynamics in the nitrogen fertilizer market and the favorable conditions expected in the upcoming spring planting season.