CVR Partners (NYSE: UAN) doubles Q2 profit and boosts cash payout
Rhea-AI Filing Summary
CVR Partners, LP reported strong results for the three months ended June 30, 2026. Net income was $78 million ($7.33 per common unit) and EBITDA was $107 million on net sales of $202 million, up from $39 million net income, $67 million EBITDA and $169 million net sales in the same period of 2025.
Performance benefited from higher nitrogen prices and excellent plant reliability. The consolidated ammonia utilization rate reached 99%, while average realized gate prices rose to $791 per ton for ammonia and $392 per ton for UAN. Cash from operating activities was $65.9 million in the quarter, supporting a stronger balance sheet with $137.5 million in cash at June 30, 2026.
The Board declared a second-quarter 2026 cash distribution of $6.08 per common unit, payable August 17, 2026 to unitholders of record on August 10, 2026. Management also provided Q3 2026 outlook, including an ammonia utilization rate of 75–80% and capital expenditures of $40–$49 million, reflecting a planned six-week turnaround and upgrade projects at the East Dubuque facility.
Positive
- Net income doubled year over year to $78 million for Q2 2026 from $39 million in Q2 2025, with EBITDA rising to $107 million from $67 million, indicating substantially stronger profitability.
- Cash distribution increased, with a Q2 2026 payout of $6.08 per common unit following a $4.00 distribution for Q1 2026, supported by available cash for distribution of $64.2 million for the quarter.
- Operational performance was very strong, with a consolidated ammonia utilization rate of 99% and higher realized prices for ammonia and UAN, contributing to improved margins and cash generation.
Negative
- Planned six-week turnaround at East Dubuque is expected to reduce ammonia utilization to 75–80% in Q3 2026 and drive higher capital spending of $40–$49 million, temporarily impacting production and cash outflows.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q2 2026: $77,504,000
Net sales Q2 2026: $202,194,000
EBITDA Q2 2026: $107,121,000
+5 more
8 metrics
Net income Q2 2026
$77,504,000
Three months ended June 30, 2026
Net sales Q2 2026
$202,194,000
Three months ended June 30, 2026
EBITDA Q2 2026
$107,121,000
Three months ended June 30, 2026
Distribution per common unit Q2 2026
$6.08
Cash distribution declared for second quarter 2026
Ammonia utilization rate Q2 2026
99%
Consolidated ammonia utilization for the quarter
Cash and cash equivalents
$137,456,000
Balance at June 30, 2026
Available cash for distribution Q2 2026
$64,220,000
Three months ended June 30, 2026
Total debt and finance lease obligations
$569,779,000
Including current portion at June 30, 2026
Key Terms
Available Cash for Distribution, EBITDA, variable distribution master limited partnership, ammonia utilization rate, +1 more
5 terms
Available Cash for Distribution financial
"Available Cash for Distribution - EBITDA for the period excluding noncash"
EBITDA financial
"EBITDA - Net income (loss) before (i) interest expense, net, (ii)"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
variable distribution master limited partnership financial
"CVR Partners is a variable distribution master limited partnership."
A variable distribution master limited partnership is a publicly traded partnership that pays investors periodic cash amounts that can change from period to period based on available earnings or cash flow. Think of it like a business that hands out profits each month but varies the size of the checks depending on how busy the business was; for investors this matters because income is less predictable, affecting portfolio yield expectations, valuation and tax reporting.
ammonia utilization rate technical
"Ammonia utilization rate (1) | 99 | % | | 91 | %"
The ammonia utilization rate measures the share of ammonia feedstock that is actually converted into the intended product or used in a process, rather than being lost, emitted, or turned into waste. For investors, it signals operational efficiency and cost control—higher utilization means lower raw-material cost per unit, better profit margins and fewer environmental or regulatory risks; think of it like a car’s fuel efficiency for an industrial chemical process.
Section 45Q financial
"monetize certain tax credits under Section 45Q of the Internal Revenue Code"
Section 45Q is a U.S. federal tax credit that pays projects for capturing and permanently storing or using carbon dioxide instead of releasing it into the atmosphere. For investors, it acts like a per‑unit subsidy that improves the economics and cash flow of carbon‑capture, clean‑energy, and industrial projects—similar to getting paid for diverting waste from a landfill—making capital investment and valuation less risky and more attractive.
Earnings Snapshot
Net sales: $202,194,000 · Guidance included
Three months ended June 30, 2026
Net sales
$202,194,000
up from $168,559,000 in Q2 2025
Net income
$77,504,000
up from $38,768,000 in Q2 2025
Earnings per common unit
$7.33
up from $3.67 in Q2 2025
EBITDA
$107,121,000
up from $67,209,000 in Q2 2025
Cash distribution per unit
$6.08
follows a $4.00 per-unit distribution for Q1 2026
Guidance
For Q3 2026, the Partnership projects ammonia utilization of 75–80%, direct operating expenses of $57–$62 million, and total capital expenditures of $40–$49 million, reflecting a planned six-week turnaround and upgrade projects at East Dubuque.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did CVR Partners (UAN) perform financially in Q2 2026?
CVR Partners generated $78 million in net income and $107 million in EBITDA on $202 million in net sales for Q2 2026, significantly above the prior year’s $39 million net income, $67 million EBITDA and $169 million in net sales.
What cash distribution did CVR Partners (UAN) declare for Q2 2026?
The Board declared a cash distribution of $6.08 per common unit for Q2 2026, payable on August 17, 2026 to unitholders of record as of August 10, 2026, reflecting higher available cash for distribution.
How did nitrogen fertilizer operations and utilization trend at CVR Partners (UAN) in Q2 2026?
CVR Partners achieved a 99% ammonia utilization rate in Q2 2026, producing 214,000 tons of ammonia and 342,000 tons of UAN. Realized gate prices increased to $791 per ton for ammonia and $392 per ton for UAN, supporting stronger margins.
What is CVR Partners’ (UAN) cash and debt position as of June 30, 2026?
As of June 30, 2026, CVR Partners held $137.5 million in cash and cash equivalents with total debt and finance lease obligations of $569.8 million. Working capital was $210.4 million, and total partners’ capital stood at $347.0 million.
What outlook and planned turnaround did CVR Partners (UAN) provide for Q3 2026?
For Q3 2026, management forecasts ammonia utilization of 75–80%, direct operating expenses of $57–$62 million, and capital expenditures of $40–$49 million, reflecting a planned six-week turnaround and upgrade projects at the East Dubuque facility.
How much available cash for distribution did CVR Partners (UAN) report for Q2 2026?
Available cash for distribution was $64.2 million for Q2 2026 and $106.5 million for the first half of 2026. These amounts underpinned the $6.08 per common unit distribution declared for the second quarter.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
___________________________________
Date of Report (Date of earliest event reported): July 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (281 ) 207-3200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 29, 2026, CVR Partners, LP (the “Partnership”) issued a press release announcing information regarding its results of operations and financial condition for the three months ended June 30, 2026, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K (“Current Report”) and Exhibit 99.1 attached hereto is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, unless specifically identified therein as being incorporated by reference. The furnishing of information in this Current Report (including Exhibit 99.1) is not intended to, and does not, constitute a determination or admission by the Partnership that the information in this Current Report is material or complete, or that investors should consider this information before making an investment decision with respect to any securities of the Partnership or its affiliates.
Item 7.01. Regulation FD Disclosure.
The information set forth under Item 2.02 is incorporated by reference as if fully set forth herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are being “furnished” as part of this Current Report on Form 8-K:
Exhibit Number | Exhibit Description | ||||
| 99.1 | Press Release dated July 29, 2026. | ||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 29, 2026
| CVR Partners, LP | |||||
| By: CVR GP, LLC, its general partner | |||||
| By: | /s/ Richard J. Roberts, Jr. | ||||
| Richard J. Roberts, Jr. | |||||
| Interim Chief Financial Officer, Vice President - Financial Planning & Analysis and Investor Relations | |||||
Exhibit 99.1
CVR Partners Reports Second Quarter 2026 Results
•Second quarter net income of $78 million, or $7.33 per common unit; EBITDA of $107 million
•Achieved a combined ammonia utilization rate of 99 percent for the second quarter of 2026
•Announced cash distribution of $6.08 per common unit
SUGAR LAND, Texas (July 29, 2026) – CVR Partners, LP (“CVR Partners” or the “Partnership”) (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products, today announced net income of $78 million, or $7.33 per common unit, and EBITDA of $107 million on net sales of $202 million for the second quarter of 2026, compared to net income of $39 million, or $3.67 per common unit, and EBITDA of $67 million on net sales of $169 million for the second quarter of 2025.
“We posted another quarter of strong operating and financial results, with a consolidated ammonia utilization rate of 99 percent and a distribution of $6.08 per common unit declared for the second quarter,” said Dane Neumann, Chief Executive Officer of CVR Partners. “The spring planting season went well, and we saw steady demand for nitrogen fertilizers across our system. Global supplies of nitrogen fertilizers remained constrained as a result of the ongoing geopolitical conflicts, which was supportive of prices during the second quarter.
“The summer fill programs for ammonia and UAN were completed in late June and early July, respectively, and we secured a solid book of business for the second half of 2026,” Neumann continued. “We are currently in the final stages of preparation for the upcoming planned six-week turnaround at East Dubuque, which is expected to begin in August. During the turnaround we also plan to commence work on the upgrades to East Dubuque’s water systems, in addition to completing the brownfield ammonia expansion that is expected to increase production capacity by approximately 5%.”
Consolidated Operations
Production at CVR Partners’ fertilizer facilities increased compared to the second quarter of 2025, producing a combined 214,000 tons of ammonia during the second quarter of 2026, of which 64,000 net tons were available for sale, while the rest was upgraded to other fertilizer products, including 342,000 tons of UAN. During the second quarter of 2025, the fertilizer facilities produced a combined 197,000 tons of ammonia, of which 54,000 net tons were available for sale, while the remainder was upgraded to other fertilizer products, including 321,000 tons of UAN.
For the second quarter of 2026, average realized gate prices for ammonia and UAN were up 33 percent and 24 percent, respectively, over the prior year to $791 and $392 per ton, respectively. Average realized gate prices for ammonia and UAN were $593 and $317 per ton, respectively, for the second quarter of 2025.
Distributions
CVR Partners also announced that on July 29, 2026, the Board of Directors of the Partnership’s general partner (the “Board”) declared a second quarter 2026 cash distribution of $6.08 per common unit, which will be paid on August 17, 2026, to common unitholders of record as of August 10, 2026.
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.
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Second Quarter 2026 Earnings Conference Call
CVR Partners previously announced that it will host its second quarter 2026 Earnings Conference Call on Thursday, July 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 second quarter 2026 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 United States trade or business. Accordingly, CVR Partners’ distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
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: the information provided under the section titled “Q3 2026 Outlook” herein; continued safe and reliable operations; impacts of planned and unplanned downtime and turnarounds on our results; drivers of our results; utilization and production rates; supply and demand; pricing of our products; 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; ability to increase production capacity through our brownfield expansion initiatives; grain prices; crop inventory levels; farmer economics and planting seasons; direct operating expenses; capital expenditures; turnaround expense and timing; 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) 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 its 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 Sugar Land, Texas, CVR Partners is a Delaware limited partnership focused on the production, marketing and distribution of nitrogen fertilizer products. It primarily produces urea ammonium nitrate (UAN) and ammonia, which are predominantly used by farmers to improve the yield and quality of their crops. CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,100 ton-per-day UAN unit and a dual-train gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. CVR Partners’ East Dubuque, Illinois, nitrogen fertilizer manufacturing facility includes a 1,075 ton-per-day ammonia unit and a 950 ton-per-day UAN unit.
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,
2
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.
Contact Information:
Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVRPartners.com
3
Non-GAAP Measures
Our management uses certain non-GAAP 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 United States (“GAAP”). These non-GAAP measures are important factors in assessing our operating results and profitability and include the measures defined below.
The following are non-GAAP measures we present for the periods ended June 30, 2026 and 2025:
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 period 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, turnarounds, 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.
4
CVR Partners, LP
(all information in this release is unaudited)
Statement of Operations Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per unit data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Net sales (1) | $ | 202,194 | $ | 168,559 | $ | 382,242 | $ | 311,425 | |||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Cost of materials and other | 28,078 | 32,547 | 57,504 | 60,448 | |||||||||||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 58,676 | 60,517 | 121,881 | 115,003 | |||||||||||||||||||
| Depreciation and amortization | 22,220 | 20,861 | 42,183 | 38,902 | |||||||||||||||||||
| Cost of sales | 108,974 | 113,925 | 221,568 | 214,353 | |||||||||||||||||||
| Selling, general and administrative expenses | 7,536 | 8,034 | 16,565 | 15,922 | |||||||||||||||||||
| Loss on asset disposal and project write-offs | 868 | 282 | 1,645 | 242 | |||||||||||||||||||
| Operating income | 84,816 | 46,318 | 142,464 | 80,908 | |||||||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest expense, net | (7,397) | (7,580) | (15,245) | (15,307) | |||||||||||||||||||
| Other income, net | 85 | 30 | 198 | 255 | |||||||||||||||||||
| Income before income taxes | 77,504 | 38,768 | 127,417 | 65,856 | |||||||||||||||||||
| Income taxes | — | — | — | — | |||||||||||||||||||
| Net income | $ | 77,504 | $ | 38,768 | $ | 127,417 | $ | 65,856 | |||||||||||||||
| Basic and diluted earnings per common unit | $ | 7.33 | $ | 3.67 | $ | 12.06 | $ | 6.23 | |||||||||||||||
| Distributions declared per common unit | 4.00 | 2.26 | 4.37 | 4.01 | |||||||||||||||||||
EBITDA* | $ | 107,121 | $ | 67,209 | $ | 184,845 | $ | 120,065 | |||||||||||||||
| Available Cash for Distribution* | 64,220 | 41,102 | 106,464 | 65,027 | |||||||||||||||||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Components of net sales: | |||||||||||||||||||||||
| Fertilizer sales | $ | 186,451 | $ | 153,852 | $ | 352,546 | $ | 282,465 | |||||||||||||||
| Other | 15,743 | 14,707 | 29,696 | 28,960 | |||||||||||||||||||
| Total net sales | $ | 202,194 | $ | 168,559 | $ | 382,242 | $ | 311,425 | |||||||||||||||
5
Selected Balance Sheet Data
(in thousands) | June 30, 2026 | December 31, 2025 | |||||||||
| Cash and cash equivalents | $ | 137,456 | $ | 69,243 | |||||||
| Working capital (inclusive of cash and cash equivalents) | 210,369 | 117,094 | |||||||||
| Total assets | 1,057,216 | 969,455 | |||||||||
| Total debt and finance lease obligation, including current portion | 569,779 | 569,846 | |||||||||
| Total liabilities | 710,247 | 703,714 | |||||||||
| Total partners’ capital | 346,969 | 265,741 | |||||||||
Selected Cash Flow Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net cash flow provided by (used in): | |||||||||||||||||||||||
| Operating activities | $ | 65,901 | $ | 24,102 | $ | 141,676 | $ | 79,493 | |||||||||||||||
| Investing activities | (14,061) | (4,883) | (26,896) | (10,690) | |||||||||||||||||||
| Financing activities | (42,470) | (26,594) | (46,567) | (45,260) | |||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 9,370 | $ | (7,375) | $ | 68,213 | $ | 23,543 | |||||||||||||||
Capital Expenditures
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Maintenance | $ | 12,250 | $ | 6,560 | $ | 19,821 | $ | 10,253 | |||||||||||||||
| Growth | 5,083 | 4,187 | 11,263 | 6,426 | |||||||||||||||||||
| Total capital expenditures | $ | 17,333 | $ | 10,747 | $ | 31,084 | $ | 16,679 | |||||||||||||||
Key Operating Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (percent of capacity utilization) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Ammonia utilization rate (1) | 99 | % | 91 | % | 101 | % | 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 six months ended June 30, 2026 and 2025 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.
6
Sales and Production Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Consolidated sales volumes (thousand tons): | |||||||||||||||||||||||
Ammonia | 54 | 57 | 127 | 117 | |||||||||||||||||||
UAN | 333 | 345 | 643 | 681 | |||||||||||||||||||
Consolidated product pricing at gate (dollars per ton): (1) | |||||||||||||||||||||||
Ammonia | $ | 791 | $ | 593 | $ | 731 | $ | 573 | |||||||||||||||
UAN | 392 | 317 | 368 | 287 | |||||||||||||||||||
Consolidated production volume (thousand tons): | |||||||||||||||||||||||
Ammonia—gross produced (2) | 214 | 197 | 434 | 413 | |||||||||||||||||||
Ammonia—net available for sale (2) | 64 | 54 | 134 | 117 | |||||||||||||||||||
UAN | 342 | 321 | 678 | 668 | |||||||||||||||||||
| Feedstock: | |||||||||||||||||||||||
Petroleum coke used in production (thousands of tons) | 136 | 130 | 274 | 261 | |||||||||||||||||||
Petroleum coke used in production (dollars per ton) | $ | 44.94 | $ | 56.68 | $ | 39.39 | $ | 49.54 | |||||||||||||||
Natural gas used in production (thousands of MMBtus) (3) | 2,014 | 1,897 | 4,129 | 4,057 | |||||||||||||||||||
Natural gas used in production (dollars per MMBtu) (3) | $ | 2.84 | $ | 3.29 | $ | 4.15 | $ | 4.00 | |||||||||||||||
(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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Ammonia — Southern plains (dollars per ton) | $ | 868 | $ | 576 | $ | 802 | $ | 569 | |||||||||||||||
Ammonia — Corn belt (dollars per ton) | 936 | 630 | 857 | 624 | |||||||||||||||||||
UAN — Corn belt (dollars per ton) | 534 | 403 | 475 | 364 | |||||||||||||||||||
Natural gas NYMEX (dollars per MMBtu) | $ | 2.94 | $ | 3.51 | $ | 3.83 | $ | 3.69 | |||||||||||||||
Q3 2026 Outlook
The table below summarizes our outlook for certain operational statistics and financial information for the third quarter of 2026. See “Forward-Looking Statements” above.
| Q3 2026 | |||||||||||
| Low | High | ||||||||||
| Ammonia utilization rate | 75 | % | 80 | % | |||||||
Direct operating expenses (in millions) (1) | $ | 57 | $ | 62 | |||||||
Total capital expenditures (in millions) (2) | $ | 40 | $ | 49 | |||||||
(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.
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Non-GAAP Reconciliations
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, and Available Cash for Distribution
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | 77,504 | $ | 38,768 | $ | 127,417 | $ | 65,856 | |||||||||||||||
| Interest expense, net | 7,397 | 7,580 | 15,245 | 15,307 | |||||||||||||||||||
| Depreciation and amortization | 22,220 | 20,861 | 42,183 | 38,902 | |||||||||||||||||||
| EBITDA and Adjusted EBITDA | 107,121 | 67,209 | 184,845 | 120,065 | |||||||||||||||||||
| Adjustments (Reserves)/Releases: | |||||||||||||||||||||||
| Accrued interest expense (excluding capitalized interest) | (9,102) | (9,064) | (18,213) | (18,023) | |||||||||||||||||||
Future operating needs (1) | (10,000) | — | (20,000) | (8,000) | |||||||||||||||||||
Capital expenditures and investments (2) | (20,188) | (14,015) | (37,984) | (25,608) | |||||||||||||||||||
Turnaround expenditures, net (3) | (2,965) | (2,308) | (4,169) | (5,130) | |||||||||||||||||||
Equity method investment (4) | (646) | (720) | 1,985 | 1,723 | |||||||||||||||||||
Available cash for distribution (5) | $ | 64,220 | $ | 41,102 | $ | 106,464 | $ | 65,027 | |||||||||||||||
| 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 and potential investment opportunities, net of any releases of previously reserved funds, of $10.2 million and $20.5 million for the three and six months ended June 30, 2026, respectively, and $7.5 million and $15.4 million for the three and six months ended June 30, 2025, respectively.
(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 joint venture created to monetize certain tax credits under Section 45Q of the Internal Revenue Code of 1986.
(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 $0.37 and $4.00 per common unit related to the fourth quarter of 2025 and the first quarter of 2026, respectively, and declared a cash distribution of $6.08 per common unit related to the second quarter of 2026 to be paid in August 2026.
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