CVR Partners, LP (NYSE:UAN) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 11:00 am ET
Greetings and welcome to the CVR Partners, LP Third Quarter 2018 Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Jay Finks, VP of Finance. Thank you, you may begin.
Thank you, Michelle. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, our CEO; Tracy Jackson, our CFO; and other members of management.
(Forward-Looking Cautionary Statements)
This call also includes various non-GAAP financial measures. The disclosures related to such non-GAAP measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2018 third quarter earnings release that we filed with the SEC yesterday after the close of the market.
With that said, I'll turn the call over to Mark Pytosh, our CEO. Mark?
Thank you, Jay. Good morning, everyone, and thank you for joining us for today's call. The financial highlights for the 2018 third quarter include a net loss of $13 million, net sales of $80 million, adjusted EBITDA of $19 million, and there is no cash available for distribution this quarter.
During the third quarter, we had strong operating performance of all the facilities. The onstream rates were Coffeyville, the gasifier and the ammonia unit ran at 100% and the UAN plant operated at 97%. While at East Dubuque, the ammonia unit ran at 99% and the UAN units operated at 98%.
For the third quarter, our combined operations produced approximately 338,000 tons of UAN and 63,000 tons of ammonia available for sale. We sold a total of approximately 310,000 tons of UAN during the third quarter of 2018 at a net back price of $170 per ton, which was a 23% increase over the third quarter 2017.
In addition, we sold a total of approximately 38,000 tons of ammonia during the third quarter of 2018 at a net back price of $297 per ton, which was a 39% increase over the third quarter of 2017. The ammonia volumes sold in the third quarter of 2018 represent a normal seasonal selling pattern. In 2017, we had poor spring ammonia application conditions in northern plains and downtime in the Coffeyville UAN plant in the second quarter of '17.
This caused ammonia inventories to be much higher than normal at the end of the second quarter of 2017, so we sold significantly more tonnage in the summer ammonia fill season, making our third quarter 2017 sales volumes unusually high. This year, we expect ammonia sales volumes to be much higher in the fourth quarter, compared to the third quarter as we enter the fall ammonia application period.
I will now turn the call over to Tracy, to discuss our financial results.
Thanks, Mark. We reported a net loss of $13 million or $0.12 per common unit and adjusted EBITDA of $19 million in the third quarter of 2018. This is compared to a net loss of $32