CVR Partners LP, Sugar Land, Texas, on May 2 reported first-quarter 2022 net income of $94 million ($8.78 per common unit) on net sales of $223 million, compared to a net loss of $25 million ($2.37 per common unit) on net sales of $61 million in last year’s first quarter. EBITDA was $123 million, compared with EBITDA of $5 million for the first quarter of 2021.
The company’s average realized gate prices for UAN were up 212 percent in the quarter, to $496/st from $159/st in last year’s first quarter. Ammonia prices were up 252 percent over the prior year, to $1,055/st from $300/st.
“CVR Partners achieved strong first-quarter results led by robust global industry conditions,” said Mark Pytosh, CEO of CVR Partners’ general partner. “The U.S. spring crop planting season is progressing, and a good season will be critical to supporting global food security. We expect industry conditions to remain firm for the remainder of 2022.”
CVR Partner’s fertilizer facilities produced a combined 187,000 tons of ammonia during the first quarter of 2022, down only slightly from the 188,000 tons produced in last year’s first quarter. Of this year’s production total, 52,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 317,000 tons of UAN. In first-quarter 2021, 272,000 tons of UAN were produced.
The company said it has turnarounds planned for summer 2022 at both its Coffeyville, Kan., and East Dubuque, Ill., facilities. The company said it incurred turnaround expenses of $0.1 million for Coffeyville and $0.5 million for East Dubuque during the first quarter.
CVR Partners also announced that on May 2, 2022, the Board of Directors of its general partner declared a first-quarter 2022 cash distribution of $2.26 per common unit, which will be paid on May 23, 2022, to common unitholders of record as of May 13, 2022. The company said it also achieved its targeted $95 million in debt reduction during the first quarter by redeeming the remaining $65 million of its 9.25 percent Senior Secured Notes due 2023.
“During the past four quarters, CVR Partners has returned an equivalent value to unitholders of approximately $13.30 per common unit through declared cash distributions and unit repurchases, in addition to the $95 million debt reduction, equating to $8.89 per common unit,” Pytosh said.
| Sales (000 st) | 1Q-22 | 1Q-21 |
| Ammonia | 40 | 32 |
| UAN | 322 | 239 |
| Plant Gate Price $/st | 1Q-22 | 1Q-21 |
| Ammonia | 1,055 | 300 |
| UAN | 496 | 159 |
| Production (000 st) | 1Q-22 | 1Q-21 |
| Ammonia – gross | 187 | 188 |
| Ammonia – net | 52 | 70 |
| UAN | 317 | 272 |
| Feedstock | 1Q-22 | 1Q-21 |
| Petroleum Coke ($/ton) | 56.46 | 42.91 |
| Natural Gas ($/mmBtu) | 5.54 | 3.10 |