CVR expansion delayed
CVR Partners LP said Jan. 9 that the expansion of its Coffeyville, Kan., UAN capacity is expected to be delayed until March 2013. CVR had earlier expected the new capacity to be available in January. The upgrade is expected to approximately double existing capacity. After the upgrade, UAN capacity will be over 3,000 st/d.
CVR said all machinery and equipment for the project has been installed and related infrastructure is in place. However, delays in the commissioning and required testing of certain control equipment have deferred the expansion start-up date until early March. In the interim, the existing fertilizer plant continues to produce ammonia and UAN at full rates.
While the delayed start-up is anticipated to impact 2013 full year cash available for distribution by approximately 5 cents per common unit, the company continues to expect a significant double-digit increase in cash available for distribution for the full year of 2013 as compared to 2012. The company reaffirms its expectation for 2012 full year distributable cash flow in the range of $1.70 to $1.80 per common unit.
Full financial guidance for 2013 will be provided with the release of the company’s 2012 fourth quarter and full year results in the first quarter of 2013.