Summary of CVR Partners Q3 2025 Earnings Call

1Key Financial Results and Metrics

Net Sales:: $164 million

Net Income:: $43 million ($4.08 per common unit)

EBITDA:: $71 million

Operating Income:: $51 million

Ammonia Plant Utilization:: 95%, affected by planned and unplanned downtime.

Production::

Ammonia: 208,000 gross tons (59,000 net tons available for sale)

UAN: 337,000 tons (sold 328,000 tons at an average price of $348/ton)

Ammonia sold at an average price of $531/ton.

Distribution Declared:: $4.02 per common unit, payable on November 17.

2Strategic Updates and Business Highlights

The company experienced a strong quarter with significant price increases for UAN (52%) and ammonia (33%) compared to Q3 2024, driven by tight inventory levels and high demand.

The ongoing turnaround at the Coffeyville facility is nearing completion, with an ammonia release incident potentially causing minor delays.

Strategic projects include a natural gas feedstock initiative at Coffeyville aimed at increasing ammonia production capacity by up to 8% and improving operational reliability.

Continued focus on safety, cost management, and maximizing marketing capabilities.

3Forward Guidance and Outlook

Anticipated ammonia utilization rate for Q4 2025 is projected between 80% and 85% due to the ongoing turnaround.

Expected direct operating expenses (excluding inventory and turnaround impacts) to be between $58 million and $63 million.

Total capital spending for Q4 is estimated at $30 million to $35 million, with turnaround expenses expected to be between $15 million and $20 million.

Positive outlook for Q4 pricing, with expectations for higher prices compared to Q3, and optimistic about the supply-demand balance into the first half of 2026.

4Bad News, Challenges, or Points of Concern

Increased direct operating expenses due to higher natural gas and electricity costs, and preliminary spending related to the Coffeyville turnaround.

Potential geopolitical risks affecting nitrogen fertilizer supply, particularly concerning Russian imports and ongoing trade tensions.

Concerns about drought conditions impacting ammonia application, although management expressed confidence in current market conditions and moisture levels.

5Notable Q&A Insights

Management is currently in detailed engineering for the Coffeyville natural gas project but has not finalized costs or returns yet.

There is optimism regarding fall ammonia runs, with expectations of strong demand despite potential acreage reductions for corn.

No immediate impact from Russian imports has been observed, but there are concerns about potential tariffs that could affect future supply.

Management refrained from providing specific pricing forecasts but indicated a solid market outlook for Q4 and into early 2026. Overall, CVR Partners reported a strong financial performance in Q3 2025, with positive pricing dynamics and strategic initiatives underway, while also navigating challenges related to operational costs and geopolitical risks.