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    UAN
    Earnings call· Jun 2026(Q2 FY26)

    CVR PARTNERS Q2 FY26 earnings call UAN

    Jul 30, 2026 Source

    Executive summary

    CVR Partners Q2 FY26 — Strong Operational Performance and Strategic Project Progress

    CVR Partners delivered robust operational results in Q2 FY26, achieving 99% ammonia plant utilization and strong financial metrics, including a significant distribution to unitholders. The company is actively progressing strategic capital projects, such as the Coffeyville feedstock diversification and East Butte capacity expansion, funded by prior cash reserves. While navigating dynamic fertilizer markets influenced by geopolitical events and seasonal price resets, management maintains a focus on reliability, cost management, and prudent capital allocation to enhance long-term value.

    Highlights

    5

    • Ammonia plant utilization reached 99% for the quarter, indicating strong operational performance.

    • The Board declared a distribution of $6.08 per common unit, reflecting $64 million of cash available for distribution.

    • Net sales were $202 million, contributing to an EBITDA of $107 million.

    • UAN prices increased approximately 24% and ammonia prices increased approximately 33% year-over-year.

    • Secured a solid order book for the second half of 2026 at attractive pricing through summer fill programs.

    Concerns

    3

    • Total sales volumes were slightly down year-over-year due to an earlier spring planting season shifting volumes into Q1 and weakening demand later in Q2 for UAN due to elevated prices.

    • Direct operating expenses increased by approximately $4 million year-over-year, primarily driven by higher repair and maintenance, catalyst, and electricity costs.

    • Corn plantings were down 4% to 95.3 million acres, though still above the five-year average.

    Guidance & targets

    9
    CategoryTargetConfidence
    Total capital spending
    $85M-$95M
    high materiality
    High
    Maintenance capital spending
    $49M-$57M
    medium materiality
    High
    Q3 FY26 ammonia utilization rate
    75-80%
    medium materiality
    High
    Q3 FY26 direct operating expenses (excluding inventory and turnaround impacts)
    $57M-$62M
    medium materiality
    High
    Q3 FY26 turnaround expenses
    $30M-$35M
    medium materiality
    High
    Q3 FY26 total capital spending
    $40M-$49M
    medium materiality
    High
    Coffeyville alternative feedstock project completion
    H2 2027
    high materiality
    High
    Target operating plant utilization rates
    above 95%
    medium materiality
    High
    Board to continue reserving capital
    Anticipate holding higher levels of cash related to these investments in the near term
    medium materiality
    High

    Operational metrics

    22
    Adjusted EBITDA
    $107Mincreased primarily due to higher UAN and ammonia sales pricing vs. Q2 2025
    Q2 FY26

    EBITDA was $107 million. Relative to the second quarter of 2025, the increase in EBITDA was primarily due to higher UAN and ammonia sales pricing.

    Ammonia Production (gross)
    214,000
    Q2 FY26

    Total ammonia for the second quarter of 2026 was 214,000 gross tons.

    Ammonia Production (net for sale)
    64,000
    Q2 FY26

    64,000 net tons were available for sale.

    UAN Production
    342,000
    Q2 FY26

    UAN production was 342,000 tons.

    UAN Sales Volume
    333,000down slightly YoY
    Q2 FY26

    During the quarter, we sold approximately 333,000 tons of UAN... Relative to the second quarter of 2025, total sales volumes were down slightly, primarily due to an earlier spring planting season shifting some volumes into the first quarter, along with some weakening demand later on the quarter due to the elevated price environment for UAN.

    Ammonia Sales Volume
    54,000down slightly YoY
    Q2 FY26

    and approximately 54,000 tons of ammonia... Relative to the second quarter of 2025, total sales volumes were down slightly, primarily due to an earlier spring planting season shifting some volumes into the first quarter, along with some weakening demand later on the quarter due to the elevated price environment for UAN.

    Distribution per common unit
    $6.08
    Q2 FY26

    the Board of Directors declared a second quarter distribution of $6.08 per common unit

    Total Liquidity
    $187M
    Q2 FY26 end

    We ended the quarter with total liquidity of $187 million, which consisted of $137 million in cash and availability under the ABL facility of $50 million.

    Cash Available for Distribution
    $64M
    Q2 FY26

    As a result, there was $64 million of cash available for distribution

    Net Cash Needs
    $43M
    Q2 FY26

    had net cash needs of $43 million for interest costs, maintenance cap-backs, and other reserves.

    Corn Planted Acreage
    95.3Mdown 4% YoY
    Spring 2026

    USDA estimates that 95.3 million acres of corn... a 4% decrease for corn

    Soybean Planted Acreage
    85.4Mup 5% YoY
    Spring 2026

    and 85.4 million acres of soybeans were planted in the spring of 2026, a 5% increase for soybeans.

    Corn Yield Estimate
    183
    2026

    Yield estimates are approximately 183 bushels per acre for corn

    Soybean Yield Estimate
    53
    2026

    Soybean yields are estimated at 53 bushels per acre

    December Corn Price
    $4.80
    Current

    December corn prices are approximately $4.80 per bushel

    November Soybean Price
    $12.20
    Current

    and November soybeans are approximately $12.20 per bushel.

    UAN Average Sales Price
    $392
    Q2 FY26

    sold approximately 333,000 tons of UAN at an average price of $392 per ton

    Ammonia Average Sales Price
    $791
    Q2 FY26

    and approximately 54,000 tons of ammonia at an average price of $791 per ton.

    European Natural Gas Price
    $19elevated
    Current

    Natural gas prices in Europe have remained elevated amid the ongoing Middle East conflicts, currently trading around $19 per mm BTU.

    US Natural Gas Price
    <$3fallen
    Current

    Will us prices have once again fallen below 3 dollars per mm BTU.

    Ammonia Plant Utilization
    99
    Q2 FY26

    our ammonia plant utilization was 99%, with both plants running well and experiencing minimal downtime during the quarter.

    Direct Operating Expenses Increase
    $4MYoY
    Q2 FY26

    direct operating expenses increased by approximately $4 million relative to the second quarter of 2025, primarily due to high repair and maintenance, catalyst, and electricity costs.

    Industry KPIs

    1
    MetricValueDetails
    Volume vs price splitUAN prices up 24%, Ammonia prices up 33%%

    Product announcements

    1
    ProductTypeDetails
    Low Carbon Ammonia Certificationmilestone

    Capital programs

    5
    Coffeyville alternative feedstock projectunderway
    Funding: cash reserves

    Benefit: utilize natural gas as an alternative feedstock to third-party pet coke

    Intended to allow the plant to utilize existing infrastructure for natural gas as an alternative feedstock. No longer planning to invest capital to source hydrogen from adjacent refinery. Expected to be completed for less than half of the original estimate and within existing reserves. No expected downtime.

    East Butte brownfield capacity expansionunderway
    Funding: reserves taken over the last few years
    Start: end of August

    Benefit: increase ammonia production capacity by up to 5%

    Planned to be completed during the upcoming planned turnaround at the ECB facility.

    East Butte water quality upgrade projectunderway
    Funding: reserves taken over the last few years
    Start: end of August

    Benefit: improve reliability and production rates

    Planned to continue work on this project during the upcoming planned turnaround.

    Coffeyville water system upgrade projectplanned
    Funding: reserves taken over the last few years

    Benefit: improve reliability and production rates

    Water system upgrade planned for the Coffeyville facility.

    DEF production and loadout capacity expansionplanned
    Funding: reserves taken over the last few years

    Benefit: expansion of our DEF production and loadout capacity

    Expansion planned for the Coffeyville facility.

    Risks & headwinds

    4
    Customer shift away from UAN due to elevated pricesQ2 FY26

    Weakening demand later in Q2

    Mitigation: Summer fill programs secured strong order book for H2 2026 at attractive pricing, implying demand returned after price reset.

    Increased direct operating expensesQ2 FY26

    $4 million increase YoY

    Mitigation: Focus on cost management and operational efficiency through capital projects.

    Geopolitical conflicts impacting nitrogen fertilizer supply and pricesOngoing

    Significantly tightened global supplies, drove prices higher in Q2

    Mitigation: Focus on safely and reliably running plants at high utilization levels to meet customer needs.

    Decreased corn planted acreageSpring 2026

    4% decrease to 95.3 million acres

    Mitigation: 95 million acres is well above the average level of corn plantings over the last five years; improved farmer economics due to higher grain prices.

    What to watch in Q3 FY26

    5

    Coffeyville alternative feedstock project completion

    H2 2027
    CurrentUnderway, design finalizing
    TargetProgress towards H2 2027 completion

    Why it matters

    This project diversifies feedstock, reduces costs, and enhances operational flexibility, impacting long-term profitability.

    Kind of the project really right now as it stands with the delivery of equipment, construction and the permitting, the project will complete likely in the second half of 27.

    Q&A highlights

    5

    Is CVR Partners still interested in acquisitions given recent management changes, and what are the strategic criteria?

    Management stated that "anything's on the table" including acquisition, merger, participating in a build, or even a sale if attractive. Acquisitions would need to be accretive to cash flow very quickly. They see challenges in the current environment for acquisitions and sales, but would consider participating as an operator/marketer in a build project rather than a financial backer.

    “I would say our thought process is really anything's on the table, acquisition, merger, participating in a bill, even a sale if there were an attractive offer.”

    asked by Rob McGuire · answered by Unknown Speaker

    2 min read5 chapters

    Detailed Narrative

    01

    Operational Excellence and Market Dynamics

    The company achieved 99% ammonia plant utilization in Q2 FY26, with both plants running efficiently. Geopolitical conflicts in the Middle East contributed to elevated nitrogen fertilizer prices during the spring planting season, though demand for UAN softened later in the quarter due to its high price relative to other nitrogen fertilizers. Despite this, summer fill programs for ammonia and UAN were successfully completed, securing a strong order book for the second half of 2026 at attractive pricing.

    02

    Agricultural Market Outlook

    USDA estimates for 2026 show a 4% decrease in corn plantings to 95.3 million acres and a 5% increase in soybean plantings to 85.4 million acres. Expected inventory carryout levels for both corn (183 bu/acre yield) and soybeans (53 bu/acre yield) are projected to be below 2025 levels. Recent increases in grain prices, driven by weather conditions, export demand, and a smaller Argentinian corn crop, are improving farmer economics.

    03

    Energy Cost Advantage

    European natural gas prices remain significantly elevated at around $19 per mm BTU, while US prices are below $3 per mm BTU. This disparity, exacerbated by damage to LNG production facilities, is expected to persist for several years, providing a structural competitive advantage to US producers like CVR Partners with access to lower-cost natural gas feedstocks.

    04

    Strategic Capital Projects

    CVR Partners is advancing several key projects. At Coffeyville, the company is finalizing design for an alternative natural gas feedstock project, aiming for completion in H2 2027 with no production downtime and at less than half the original estimated cost. This project will utilize existing infrastructure and is funded within existing reserves. The Coffeyville facility also secured low-carbon ammonia certification, opening new market opportunities.

    05

    Capacity Expansion and Reliability

    The upcoming East Butte turnaround, scheduled for late August, includes a brownfield capacity expansion designed to increase ammonia production by up to 5%. Additionally, water quality upgrade projects are underway at East Butte and planned for Coffeyville, alongside an expansion of DEF production and loadout capacity. These initiatives are aimed at improving plant reliability and production rates, supporting a target utilization rate above 95% outside of turnaround periods.

    AI-generated summary of the company’s earnings call. Not investment advice.