CVR Partners Reports Third Quarter 2025 Results
-
Third quarter net income of
$43 million $4.08 $71 million -
Announced cash distribution of
$4.02
“CVR Partners achieved strong results for the third quarter of 2025 driven by safe, reliable operations and a combined ammonia production rate of 95 percent,” said Mark Pytosh, Chief Executive Officer. “Harvest is nearing completion and ammonia demand for fall application has been strong.
“With market conditions remaining favorable, we will continue to focus on safe, reliable operations, as well as cash generation and unitholder returns,” Pytosh said. “In addition, CVR Partners is pleased to declare a third quarter 2025 cash distribution of
Consolidated Operations
Production at CVR Partners’ fertilizer facilities decreased slightly compared to the third quarter of 2024, producing a combined 208,000 tons of ammonia during the third quarter of 2025, of which 59,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 337,000 tons of UAN. During the third quarter of 2024, the fertilizer facilities produced a combined 212,000 tons of ammonia, of which 61,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 321,000 tons of UAN.
For the third quarter 2025, average realized gate prices for ammonia and UAN were up 33 percent and 52 percent, respectively, over the prior year to
Distributions
CVR Partners also announced that on October 29, 2025, the Board of Directors of the Partnership’s general partner (the “Board”) declared a third quarter 2025 cash distribution of
CVR Partners is a variable distribution master limited partnership. As a result, its distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, and use of cash and cash reserves deemed necessary or appropriate by the Board.
Third Quarter 2025 Earnings Conference Call
CVR Partners previously announced that it will host its third quarter 2025 Earnings Conference Call on Thursday, October 30, at 11 a.m. Eastern. This Earnings Conference Call may also include discussion of the Partnership’s developments, forward-looking information and other material information about business and financial matters.
The third quarter 2025 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Partners’ website at www.CVRPartners.com. For investors or analysts who want to participate during the call, the dial-in number is (800) 715-9871, conference ID 6969200. A repeat of the call can be accessed for seven days by dialing (800) 770-2030, conference ID 6969200. The webcast will be archived and available on the Investor Relations section of CVR Partners’ website at www.CVRPartners.com.
Qualified Notice
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Partners’ distributions to foreign investors are attributable to income that is effectively connected with a
Forward-Looking Statements
This news release contains forward-looking statements. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; net income and net sales; drivers of our results; utilization and production rates; nitrogen fertilizer pricing, supply and demand; ability to generate free cash flow; distributions, including the timing, payment and amount (if any) thereof; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; global fertilizer industry conditions; grain prices; crop inventory levels; farmer economics and planting seasons; direct operating expenses; capital expenditures; turnaround expense and timing; cash reserves; management changes; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) the health and economic effects of any pandemic; impacts of the planting season on our business; CVR Energy, Inc.’s and its controlling stockholder’s intention regarding potential strategic transactions involving the Partnership and ownership of our common units; potential operating hazards; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; general economic and business conditions; political disturbances, geopolitical instability and tensions, including those arising from trade policies and tariffs; impacts of plant outages and weather conditions and events; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Partners disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Partners, LP
Headquartered in
Investors and others should note that CVR Partners may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Partners may use these channels to distribute material information about the Partnership and to communicate important information about the Partnership, corporate initiatives and other matters. Information that CVR Partners posts on its website could be deemed material; therefore, CVR Partners encourages investors, the media, its customers, business partners and others interested in the Partnership to review the information posted on its website.
Non-GAAP Measures
Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in
The following are non-GAAP measures we present for the periods ended September 30, 2025 and 2024:
EBITDA - Net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.
Adjusted EBITDA - EBITDA adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends.
Available Cash for Distribution - EBITDA for the quarter excluding noncash income or expense items (if any), for which adjustment is deemed necessary or appropriate by the Board in its sole discretion, less (i) reserves for maintenance capital expenditures, debt service and other contractual obligations and (ii) reserves for future operating or capital needs (if any), in each case, that the Board deems necessary or appropriate in its sole discretion. Available Cash for Distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the Board.
We present these measures because we believe they may help investors, analysts, lenders, and ratings agencies analyze our results of operations and liquidity in conjunction with our GAAP results, including, but not limited to, our operating performance as compared to other publicly traded companies in the fertilizer industry, without regard to historical cost basis or financing methods, and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable GAAP financial measures. Refer to the “Non-GAAP Reconciliations” included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.
CVR Partners, LP (all information in this release is unaudited) |
|||||||||||||||
Statement of Operations Data |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in thousands, except per unit data) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net sales (1) |
$ |
163,549 |
|
|
$ |
125,203 |
|
|
$ |
474,973 |
|
|
$ |
385,769 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of materials and other |
|
25,390 |
|
|
|
26,263 |
|
|
|
85,837 |
|
|
|
77,704 |
|
Direct operating expenses (exclusive of depreciation and amortization) |
|
57,681 |
|
|
|
55,761 |
|
|
|
172,685 |
|
|
|
158,300 |
|
Depreciation and amortization |
|
19,958 |
|
|
|
24,732 |
|
|
|
58,859 |
|
|
|
64,063 |
|
Cost of sales |
|
103,029 |
|
|
|
106,756 |
|
|
|
317,381 |
|
|
|
300,067 |
|
Selling, general and administrative expenses |
|
9,171 |
|
|
|
7,447 |
|
|
|
25,094 |
|
|
|
21,065 |
|
Loss on asset disposal |
|
713 |
|
|
|
4 |
|
|
|
955 |
|
|
|
17 |
|
Operating income |
|
50,636 |
|
|
|
10,996 |
|
|
|
131,543 |
|
|
|
64,620 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(7,587 |
) |
|
|
(7,241 |
) |
|
|
(22,894 |
) |
|
|
(22,416 |
) |
Other income, net |
|
23 |
|
|
|
52 |
|
|
|
279 |
|
|
|
376 |
|
Income before income tax expense |
|
43,072 |
|
|
|
3,807 |
|
|
|
108,928 |
|
|
|
42,580 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
Net income |
$ |
43,072 |
|
|
$ |
3,807 |
|
|
$ |
108,928 |
|
|
$ |
42,605 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per common unit |
$ |
4.08 |
|
|
$ |
0.36 |
|
|
$ |
10.31 |
|
|
$ |
4.03 |
|
Distributions declared per common unit |
|
3.89 |
|
|
|
1.90 |
|
|
|
7.90 |
|
|
|
5.50 |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA* |
$ |
70,617 |
|
|
$ |
35,780 |
|
|
$ |
190,681 |
|
|
$ |
129,059 |
|
Available Cash for Distribution* |
|
42,440 |
|
|
|
12,612 |
|
|
|
107,466 |
|
|
|
53,035 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common units outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and Diluted |
|
10,570 |
|
|
|
10,570 |
|
|
|
10,570 |
|
|
|
10,570 |
|
| _____________________________ | |
* |
See “Non-GAAP Reconciliations” section below for a reconciliation of these amounts. |
(1) |
Below are the components of net sales: |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
(in thousands) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Components of net sales: |
|
|
|
|
|
|
|
||||
Fertilizer product sales |
$ |
149,809 |
|
$ |
109,486 |
|
$ |
432,274 |
|
$ |
346,590 |
Other |
|
13,740 |
|
|
15,717 |
|
|
42,699 |
|
|
39,179 |
Total net sales |
$ |
163,549 |
|
$ |
125,203 |
|
$ |
474,973 |
|
$ |
385,769 |
Selected Balance Sheet Data |
|||||
(in thousands) |
September 30, 2025 |
|
December 31, 2024 |
||
Cash and cash equivalents |
$ |
156,183 |
|
$ |
90,857 |
Working capital (inclusive of cash and cash equivalents) |
|
180,825 |
|
|
122,192 |
Total assets |
|
1,037,195 |
|
|
1,018,724 |
Total debt and finance lease obligation, including current portion |
|
569,876 |
|
|
568,851 |
Total liabilities |
|
718,697 |
|
|
725,654 |
Total partners’ capital |
|
318,498 |
|
|
293,070 |
Selected Cash Flow Data |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in thousands) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net cash flow provided by (used in): |
|
|
|
|
|
|
|
||||||||
Operating activities |
$ |
91,744 |
|
|
$ |
86,725 |
|
|
$ |
171,237 |
|
|
$ |
137,750 |
|
Investing activities |
|
(10,729 |
) |
|
|
(3,627 |
) |
|
|
(21,419 |
) |
|
|
(14,357 |
) |
Financing activities |
|
(39,232 |
) |
|
|
(20,083 |
) |
|
|
(84,492 |
) |
|
|
(58,133 |
) |
Net increase in cash and cash equivalents |
$ |
41,783 |
|
|
$ |
63,015 |
|
|
$ |
65,326 |
|
|
$ |
65,260 |
|
Capital Expenditures |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
(in thousands) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Maintenance |
$ |
7,412 |
|
$ |
6,488 |
|
$ |
17,665 |
|
$ |
15,591 |
Growth |
|
5,301 |
|
|
3,211 |
|
|
11,727 |
|
|
3,614 |
Total capital expenditures |
$ |
12,713 |
|
$ |
9,699 |
|
$ |
29,392 |
|
$ |
19,205 |
Key Operating Data |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
(percent of capacity utilization) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Ammonia utilization rate (1) |
95 |
% |
|
97 |
% |
|
96 |
% |
|
96 |
% |
| _____________________________ | |
(1) |
Reflects our ammonia utilization rate on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of the Partnership’s facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and nine months ended September 30, 2025 and 2024 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate. |
Sales and Production Data |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Consolidated sales volumes (thousand tons): |
|
|
|
|
|
|
|
||||
Ammonia |
|
48 |
|
|
62 |
|
|
165 |
|
|
175 |
UAN |
|
328 |
|
|
336 |
|
|
1,009 |
|
|
950 |
|
|
|
|
|
|
|
|
||||
Consolidated product pricing at gate (dollars per ton): (1) |
|
|
|
|
|
|
|
||||
Ammonia |
$ |
531 |
|
$ |
399 |
|
$ |
561 |
|
$ |
481 |
UAN |
|
348 |
|
|
229 |
|
|
307 |
|
|
254 |
|
|
|
|
|
|
|
|
||||
Consolidated production volume (thousand tons): |
|
|
|
|
|
|
|
||||
Ammonia (gross produced) (2) |
|
208 |
|
|
212 |
|
|
621 |
|
|
626 |
Ammonia (net available for sale) (2) |
|
59 |
|
|
61 |
|
|
181 |
|
|
191 |
UAN |
|
337 |
|
|
321 |
|
|
1,005 |
|
|
964 |
|
|
|
|
|
|
|
|
||||
Feedstock: |
|
|
|
|
|
|
|
||||
Petroleum coke used in production (thousands of tons) |
|
134 |
|
|
133 |
|
|
394 |
|
|
395 |
Petroleum coke used in production (dollars per ton) |
$ |
44.58 |
|
$ |
44.69 |
|
$ |
47.86 |
|
$ |
60.93 |
Natural gas used in production (thousands of MMBtus) (3) |
|
2,114 |
|
|
2,082 |
|
|
6,171 |
|
|
6,443 |
Natural gas used in production (dollars per MMBtu) (3) |
$ |
3.18 |
|
$ |
2.19 |
|
$ |
3.72 |
|
$ |
2.40 |
_____________________________ |
|
(1) |
Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry. |
(2) |
Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products. |
(3) |
The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense. |
Key Market Indicators |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Ammonia — Southern plains (dollars per ton) |
$ |
618 |
|
$ |
491 |
|
$ |
582 |
|
$ |
528 |
Ammonia — Corn belt (dollars per ton) |
|
657 |
|
|
537 |
|
|
635 |
|
|
568 |
UAN — Corn belt (dollars per ton) |
|
399 |
|
|
254 |
|
|
375 |
|
|
278 |
|
|
|
|
|
|
|
|
||||
Natural gas NYMEX (dollars per MMBtu) |
$ |
3.03 |
|
$ |
2.11 |
|
$ |
3.46 |
|
$ |
2.11 |
Q4 2025 Outlook
The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2025. See “Forward-Looking Statements” above.
|
Q4 2025 |
||||||
|
Low |
|
High |
||||
Ammonia utilization rate |
|
80 |
% |
|
|
85 |
% |
|
|
|
|
||||
Direct operating expenses (in millions) (1) |
$ |
58 |
|
|
$ |
63 |
|
Total capital expenditures (in millions) (2) |
$ |
30 |
|
|
$ |
35 |
|
_____________________________ |
|
(1) |
Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and impacts of inventory adjustments. |
(2) |
Capital expenditures are disclosed on an accrual basis. |
Non-GAAP Reconciliations |
|||||||||||||||
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, and Available Cash for Distribution |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in thousands) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net income |
$ |
43,072 |
|
|
$ |
3,807 |
|
|
$ |
108,928 |
|
|
$ |
42,605 |
|
Interest expense, net |
|
7,587 |
|
|
|
7,241 |
|
|
|
22,894 |
|
|
|
22,416 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
Depreciation and amortization |
|
19,958 |
|
|
|
24,732 |
|
|
|
58,859 |
|
|
|
64,063 |
|
EBITDA and Adjusted EBITDA |
|
70,617 |
|
|
|
35,780 |
|
|
|
190,681 |
|
|
|
129,059 |
|
Adjustments (Reserves)/Releases: |
|
|
|
|
|
|
|
||||||||
Accrued interest expense (excluding capitalized interest) |
|
(9,192 |
) |
|
|
(8,486 |
) |
|
|
(27,215 |
) |
|
|
(25,456 |
) |
Future operating needs (1) |
|
6,000 |
|
|
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
Capital expenditures (2) |
|
(15,312 |
) |
|
|
(10,762 |
) |
|
|
(40,920 |
) |
|
|
(40,416 |
) |
Turnaround expenditures, net (3) |
|
(8,974 |
) |
|
|
(3,178 |
) |
|
|
(14,104 |
) |
|
|
(9,772 |
) |
Equity method investment (4) |
|
(699 |
) |
|
|
(742 |
) |
|
|
1,024 |
|
|
|
(380 |
) |
Available cash for distribution (5) |
$ |
42,440 |
|
|
$ |
12,612 |
|
|
$ |
107,466 |
|
|
$ |
53,035 |
|
|
|
|
|
|
|
|
|
||||||||
Common units outstanding |
|
10,570 |
|
|
|
10,570 |
|
|
|
10,570 |
|
|
|
10,570 |
|
_____________________________ |
|
(1) |
Amount consists of reserves established by management and approved by the Board for potential future cash needs related to nitrogen fertilizer seasonality and feedstock price volatility. |
(2) |
Amount consists of maintenance capital expenditures, including additional reserves for future profit and growth projects, net of any releases of previously reserved funds, of |
(3) |
Amount consists of reserves for periodic, planned turnarounds, net of expenditures incurred in the period. |
(4) |
Amount consists of distributions received by the Partnership adjusted for the amortization of deferred revenue related to the 45Q transaction. |
(5) |
Amount represents the cumulative available cash for distribution based on full year results. However, available cash for distribution is calculated quarterly, with distributions (if any) being paid in the following period. The Partnership declared and paid a cash distribution of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251029868774/en/
Contact Information:
Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVRPartners.com
Media Relations
Brandee Stephens
(281) 207-3516
MediaRelations@CVRPartners.com
Source: CVR Partners, LP
