CVR Partners, LP (NYSE:UAN) Q1 2019 Earnings Conference Call Transcript

Apr 25, 2019 • 11:00 am ET

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CVR Partners, LP (NYSE:UAN) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the CVR Partners, LP First Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Jay Finks, Vice President of Finance and Treasurer. Thank you. You may begin.

Executive
Jay Finks

Thank you, Michelle. Good Morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, our Chief Executive Officer; Tracy Jackson, our Chief Financial Officer; and other members of management.

Prior to discussing our 2019 first 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. Without limiting the foregoing, the words outlook, believes, anticipates, plans, expects and similar expressions are intended to identify 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 reconciliation to the most directly comparable GAAP financial measures are included in our 2019 first 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 Chief Executive Officer. Mark?

Executive
Mark A. Pytosh

Thank you, Jay. Good morning, everyone and thank you for joining us for today's call. To summarize financial highlights for the first quarter of 2019 included net sales of $92 million and net loss of $6 million, adjusted EBITDA of $26 million. And the Board of Directors declared a first quarter distribution of $0.07 per common unit, which will be paid on May 13 to unitholders of record on May 6.

During the first quarter of 2019, we had strong operational reliability at both facilities. At Coffeyville, the ammonia plant operated at 96% utilization for the quarter, consistent with utilization for the first quarter of 2018. At East Dubuque, the ammonia plant operated at 69% utilization compared to 90% in the prior year period adjusted for turnarounds. We lowered the ammonia rate at East Dubuque during the first quarter to manage our storage capacity levels at the plant due to the poor fall weather.

For the first quarter of 2019, our combined operations produced approximately 179,000 gross tons of ammonia, 335,000 tons of UAN and 41,000 net tons of ammonia available for sale compared to production of 199,000 ton -- gross tons