Teleconferência de Resultados do 3º Trimestre de 2026 da CVR Partners (UAN): Distribuição de US$ 1,79 e Perspectiva de Utilização no 4º Trimestre

Principais Destaques

• A CVR Partners LP (NYSE: UAN) relatou receita líquida de US$ 146 milhões no terceiro trimestre de 2026, prejuízo líquido de US$ 11 milhões, ou US$ 1,02 por cota ordinária, e EBITDA de US$ 20 milhões.
• O Conselho de Administração declarou uma distribuição de US$ 1,79 por cota ordinária, a ser paga em 23 de novembro aos cotistas registrados no fechamento do mercado em 16 de novembro.
• A taxa de utilização da fábrica de amônia foi de 80%, refletindo a parada de manutenção programada em East Dubuque, iniciada no final de agosto e concluída em outubro.
• As vendas de UAN somaram aproximadamente 327.000 toneladas a um preço médio de US$ 309 por tonelada. O preço médio do UAN recuou 11% em relação ao mesmo período do ano anterior. As vendas de amônia foram de cerca de 36.000 toneladas a US$ 637 por tonelada, com alta de preço de aproximadamente 20%.
• A administração projeta uma taxa de utilização de amônia entre 88% e 93% no quarto trimestre, incluindo o efeito da conclusão da parada de manutenção em East Dubuque em outubro.
• A empresa fortaleceu sua carteira de pedidos para o restante de 2026 e início de 2027. A administração citou a oferta local restrita, preços mais firmes de fertilizantes nitrogenados e a vantagem de custo do gás natural norte-americano como fatores sustentadores.

Principais Dados Financeiros

Excluindo os efeitos de estoques e da parada de manutenção, as despesas operacionais diretas aumentaram cerca de US$ 1 milhão em relação ao 3T25. Custos de mão de obra mais elevados foram parcialmente compensados pelo menor consumo de eletricidade e gás natural.

Desempenho Operacional e dos Negócios

A parada de manutenção em East Dubuque reduziu a produção e a utilização durante o trimestre. O processo começou mais tarde do que o planejado inicialmente devido a atrasos em equipamentos, mas foi concluído em outubro dentro do cronograma revisado. A administração informou que a próxima parada programada ocorrerá em Coffeyville em 2028, deixando a empresa sem atividades de parada agendadas pelos próximos dois anos.

Os preços do UAN se fortaleceram após a redefinição de reposição do verão, enquanto a demanda por amônia no outono foi sólida. A administração informou que a disponibilidade limitada de terminais no Corn Belt impulsionou os preços da amônia no outono para os níveis mais altos da temporada. A empresa continuou registrando volumes para o quarto trimestre de 2026 e o primeiro trimestre de 2027 a preços classificados pela administração como atraentes.

Durante a parada de manutenção em East Dubuque, a CVR Partners concluiu uma expansão de capacidade brownfield e uma melhoria na qualidade da água. A empresa planeja testar operações sustentáveis no nível de capacidade ampliado durante o quarto trimestre.

Em Coffeyville, as iniciativas planejadas incluem a modernização do sistema de água e a expansão da capacidade de produção e carregamento de fluido de exaustão de diesel (Arla 32). Esses projetos sustentam a meta da administração de operar as plantas acima de 95% da capacidade nominal, excluindo os efeitos das paradas de manutenção.

A empresa também está concluindo as estimativas de engenharia e custos para um projeto de flexibilidade de matéria-prima em Coffeyville. Sujeito à aprovação do Conselho de Administração, a administração espera que a construção comece em 2027. O projeto permitirá que a unidade utilize uma mistura otimizada de gás natural e coque de petróleo de terceiros com base nos preços vigentes.

Projeções da Administração

Para o ano completo de 2026, a administração estima um gasto total de capital entre aproximadamente US$ 95 milhões e US$ 104 milhões, incluindo de US$ 55 milhões a US$ 63 milhões em capital de manutenção.

A administração espera que uma parcela significativa do gasto de capital de crescimento e lucro seja financiada por reservas de caixa acumuladas nos últimos anos. O Conselho de Administração pode continuar retendo capital à medida que a execução dos projetos e os gastos aumentem, o que pode manter os saldos de caixa elevados no curto prazo e afetar as distribuições trimestrais variáveis.

Riscos e Pontos-Chave de Atenção

• A oferta global de nitrogênio permanece incerta devido aos conflitos envolvendo a Rússia, a Ucrânia e o Oriente Médio, bem como aos contínuos ataques às rotas de navegação.
• As exportações chinesas continuam elevadas, enquanto os volumes de oferta do Oriente Médio estão se recuperando gradualmente, gerando incerteza em relação à disponibilidade e aos preços globais de fertilizantes.
• Os preços do gás natural na Europa subiram para acima de US$ 30 por MMBtu, em comparação com os preços nos EUA próximos de US$ 3 por MMBtu. A administração afirmou que isso mantém os custos de produção de amônia na Europa acima dos preços de importação e tem contribuído para reduções na produção.
• Os preços dos fertilizantes nitrogenados se recuperaram das mínimas do verão, mas a queda nos preços do milho tornou a acessibilidade dos fertilizantes um pouco menos favorável do que no final do verão.
• A CVR Partners possui uma política de distribuição variável. As distribuições podem oscilar de acordo com os resultados operacionais, preços de fertilizantes, investimentos em capital e reservas de caixa determinadas pelo Conselho de Administração.
• O projeto de flexibilidade de matéria-prima em Coffeyville permanece sujeito à engenharia final, estimativas de custos e aprovação do Conselho de Administração.

Transcrição Completa da Teleconferência de Resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Hello, everyone. Thank you for joining us, and welcome to the CVR Partners LP Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Richard Roberts, Interim CFO and VP of [ FP&A ] and Investor Relations. Richard, please go ahead.

Richard Roberts

Thank you. Good morning, everyone. We appreciate your participation in today's call. With me today are Dane Neumann, our Chief Executive Officer; Mike Wright, our Chief Operating Officer; and other members of management. Prior to discussing our 2026 Third Quarter Results, let me remind you that this conference call may contain forward-looking statements as that term is defined under federal securities laws. For this purpose, any statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements. .

You are cautioned that these statements may be affected by important factors set forth in our filings with the Securities and Exchange Commission and in our latest earnings release. As a result, actual operations or results may differ materially from the results discussed in the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. This call also includes various non-GAAP financial measures. The disclosures related to such non-GAAP measures, including reconciliations to the most directly comparable GAAP financial measures, are included in our 2026 3rd quarter earnings release that we filed with the SEC for the period.

Let me also remind you that we are a variable distribution in -- we will review our previous sales reserves, current cash usage, evaluate future anticipated cash needs and may reserve amounts for other future cash needs as determined by our general partner's Board. As a result, our distributions, if any, will vary from quarter-to-quarter due to several factors, including, but not limited to, operating performance, fluctuations in the prices received for finished products, capital expenditures and cash reserves being necessary or operated by the Board of Directors of our general Department. With that said, I'll turn the call over to Dane Neumann, our Chief Executive Officer. Dave? .

Dane Neumann

Thank you, Richard. Good morning, everyone, and thank you for joining us for today's call. The summarized financial highlights for the third quarter of 2026 include net sales of $146 million, net loss of $11 million, EBITDA of $20 million, and the Board of Directors of CVR Partners' general partner declared a third quarter distribution of $1.79 per common unit which will be paid on November 23 to unitholders of record at the close of the market on November 16.

For the third quarter of 2026, our ammonia plant utilization was 80%, which was impacted by the planned turnaround at East Dubuque that began in late August and was completed in October. Apart from the turnaround, our facilities ran well during the quarter, and we continued to see steady demand across the system after the summer price reset. Since the summer, prices have steadily increased for both ammonia and UAN, and we have a good order book for the remainder of 2026 and into 2027, which I will discuss further in my closing remarks. I will now turn the call over to Richard to discuss our financial results.

Richard Roberts

Thank you, Dane. Turning to our results. For the third quarter of 2026, we reported net sales of $146 million and an operating loss of $4 million. Net losses for the quarter were $11 million or $1.02 per common unit and EBITDA was $20 million. Relative to the third quarter of 2025, the decrease in EBITDA was primarily due to turn and expenses incurred in the quarter, along with lower UAN sales prices and a slight decline in sales volumes. .

Total volume production for the third quarter was 175,000 gross tons, of which 46,000 net tons were available for sale and UAN production was 294,000 tons. During the quarter, we sold approximately 327,000 tons of UAN at an average price of $309 per ton and approximately 36,000 tons of ammonia at an average price of $637 per ton. Relative to the third quarter of 2025, total sales volumes were down slightly, primarily due to reduced production volumes as a result of the CD turnaround. The reported prices for UAN decreased by 11% and ammonia prices increased approximately 20% relative to the prior year period. Direct operating expenses for the third quarter of 2026 were $90 million, including turn on expenses of approximately $27 million. Excluding inventory and turnaround impacts direct operating expenses increased by approximately $1 million relative to the third quarter of 2025, primarily due to higher labor costs, partially offset by lower electricity and natural gas consumption.

Capital spending for the third quarter were $75 million of which $21 million was maintenance capital. We estimate total capital spending for 2026 to be approximately $95 million to $104 million, of which $55 million to $63 million is expected to be maintenance capital. We anticipate a significant portion of the profit and growth capital spending for 2026 will be funded through cash reserves taken over the past few years. We ended the quarter with total liquidity of $203 million, which consisted of $158 million in cash and availability under the ABL facility of $45 million.

Within our cash balance of $158 million, we had approximately $43 million related to customer prepayments for the future delivery of product. In assessing our cash available for distribution, we generated EBITDA of approximately $20 million and had net cash gains of approximately $1 million for interest costs, maintenance CapEx and other reserves, which includes the release of approximately $42 million of previous reverses. As a result, we are $19 million of cash available for distribution and the Board of Directors of our general partner to start distribution of $1.79 per common unit.

Looking ahead to the fourth quarter 2026, we estimate our loan utilization rate to be between 88% and 93%which will be impacted by the completion of the ECB turnaround in October. We have some direct operating expenses, excluding inventory current impacts to be between $58 million and $63 million. Turn on expenses to be between $4 million and $6 million and total capital spending to be between $26 million and $34 million. With that, I'll turn the call back over to Dane.

Dane Neumann

Thanks, Richard. In summary, the third quarter was another strong 1 for our operations, apart from the planned turnaround at East Dubique. The turnaround started a few weeks later than originally planned due to some equipment delays and was completed in October, in line with the revised schedule. The next turnaround is currently planned for 2028 at Coffeyville, and we look forward to 2 years ahead with no turnaround activity. Fall ammonia application is getting underway in the Corn Belt region as the harvest progresses, and activity is expected to pick up in the Southern Plains over the next few weeks.

Demand for ammonia has been strong and limited terminal availability in the Corn Belt has pushed fall pricing to the highest levels of the season. Offshore prices are firming ahead of the November Tampa settlement, although the gap between inland and seaborne ammonia prices remains wide. For UAN, the market firmed through the third quarter after the summer fill reset. Local supply remains tight the first spring 2027 prices were posted in early October.

We have continued to build our book of business for the fourth quarter and into the first quarter of 2027 at attractive pricing. The ongoing conflicts in Russia, Ukraine and the Middle East continue to affect global nitrogen supply, including shipping through this rate or moves. Global supply remains a key variable. Chinese exports have been elevated and Middle East volumes are recovering gradually.

However, continued attacks on shipping highlight the persistent geopolitical risks impacting fertilizer availability and pricing. Our focus remains on safely and reliably running our plants at high utilization rates to meet our customers' needs. Natural gas prices in Europe have risen further since our last call to over $30 per MMBtu. That keeps ammonia production costs in Europe well above the current import prices and has led to some production curtailments. Meanwhile, U.S. nat gas prices remained near $3 per MMBtu.

We continue to believe the structural gap favors U.S. producers with access to low-cost secure feedstock. Nitrogen fertilizer prices have recovered from their summer lows, while corn prices have eased from their recent highs, although affordability is currently somewhat less favorable than it was in late summer. We believe the combination of tight local supply and constructive global balance and a solid forward book positions us well heading into the spring.

During the turnaround, we completed the brownfield capacity expansion, and we intend to test the ability to sustainably operate at the increased capacity level during the fourth quarter. We also completed the work on the water quality upgrade project. At the Coffeyville facility, we have a similar water system upgrade plan, along with the expansion of our DEF production and load-out capacity. The goal of these projects is to improve reliability and production rates, supporting our target of operating the plants at utilization rates above 95% of named capacity, excluding the impact of turnarounds.

We are in the final phases of completing detailed engineering and cost estimates for the feedstock optionality project at Coffeyville. And with approval by the Board of Directors of our general partner, we expect to proceed with construction in 2027. If completed, this initiative would make the Coffeyville facility the only nitrogen fertilizer facility in the United States with dual feedstock flexibility, providing us the ability to choose the optimal mix of natural gas and third-party pet coke depending on prevailing prices. The funds needed for these projects and other initiatives are coming from the reserves taken over the last few years and the Board elected to continue reserving capital in the third quarter.

While the Board looks at reserves every quarter, I would expect them to continue to elect to reserve some capital and we anticipate holding higher levels of cash related to these investments in the near term as we ramp up execution and spending. We believe unitholders will see the befits of these investments in the coming years as these projects are completed and brought online.

In closing, I would like to thank our employees for all their hard work during the turnaround and continuing to deliver on our marketing and logistics plans, resulting in a distribution of $1.79 per common unit for the third quarter. With that, we are ready to answer any questions. Operator?

Operator

[Operator Instructions] We have no questions at this time. I will now call back to Dane Neumann for closing remarks.

Dane Neumann

All right. Again, I would like to thank you all for your interest in CVR Partners and our employees for their hard work and commitment towards safe, reliable and environmentally responsible operations. We look forward to reviewing our fourth quarter 2026 results during our next earnings call. Have a safe day.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.