CVR Partners Q2 Earnings Call Highlights

CVR Partners reported $78 million in net income, or $7.33 per common unit, with EBITDA of $107 million as UAN and ammonia prices rose 24% and 33%, respectively, year over year. The board declared a $6.08 per-unit quarterly distribution. Both ammonia plants operated reliably, with 99% utilization, while the company ended the quarter with $187 million in liquidity. Management expects 2026 capital spending of $85 million to $95 million. Third-quarter results will be affected by a scheduled East Dubuque turnaround, with utilization expected at 75% to 80% and turnaround costs of $30 million to $35 million. CVR also plans an ammonia-capacity expansion and a lower-cost Coffeyville natural-gas conversion targeted for completion in the second half of 2027.

CVR Partners NYSE: UAN reported second-quarter 2026 net income of $78 million, or $7.33 per common unit, as higher nitrogen fertilizer pricing lifted results despite slightly lower sales volumes. The company posted net sales of $202 million, operating income of $85 million and EBITDA of $107 million. The board declared a quarterly distribution of $6.08 per common unit, payable Aug. 17 to unitholders of record at the close of market on Aug. 10. Interim CFO Richard J. Roberts Jr. said the company calculated $64 million of cash available for distribution after $43 million of cash needs for interest costs, maintenance capital expenditures and other reserves.

CEO Dane Neumann said both ammonia plants ran well during the quarter, with ammonia utilization reaching 99% and minimal downtime. The company produced 214,000 gross tons of ammonia, including 64,000 net tons available for sale, and 342,000 tons of UAN. CVR Partners sold approximately 333,000 tons of UAN at an average price of $392 per ton and about 54,000 tons of ammonia at an average price of $791 per ton. Compared with the second quarter of 2025, UAN prices increased about 24%, while ammonia prices rose about 33%. Roberts said the EBITDA increase from the prior-year quarter was primarily attributable to higher sales prices for UAN and ammonia. Sales volumes declined slightly, however, reflecting an earlier spring planting season that moved some sales into the first quarter and weaker UAN demand late in the second quarter as prices rose. Neumann said conflicts in the Middle East and the effective closure of the Strait of Hormuz tightened global nitrogen fertilizer supplies during the spring, supporting higher prices. While demand was steady across the company’s system, some customers began shifting away from UAN toward the end of planting season because of its elevated price relative to other nitrogen fertilizers.

Second-quarter direct operating expenses were $59 million. Excluding inventory impacts, direct operating costs increased about $4 million from a year earlier, driven by higher repair and maintenance, catalyst and electricity costs. Capital spending totaled $17 million during the quarter, including $12 million of maintenance capital. The company expects total 2026 capital spending of approximately $85 million to $95 million, including maintenance capital expenditures of $49 million to $57 million. Management said a significant portion of the profit and growth spending plan is expected to be funded through cash reserves accumulated in prior years. CVR Partners ended the quarter with total liquidity of $187 million, consisting of $137 million in cash and $50 million of availability under its asset-based lending facility.