Overview & Strategic Factors -- Partnership formed by CVR Energy, Inc. in June 2007 IPO in April 2011 -- NYSE:UAN -- Manufacturing facility primarily produces ammonia and urea ammonium nitrate (UAN) -- -- Plant located in Coffeyville,…
Solid Industry Fundamentals Key Demand Drivers NYSE:UAN World Population World Farmland Per Capita 10 0.8 8 Acres Per Person Billions of People 0.7 6 0.6 4 0.5 2 0 0.4 1950 1970 1990 2010 2030 2050 1970 1980 1990…
Solid Industry Fundamentals Consistent Growth in Fertilizer Demand NYSE:UAN Global Fertilizer Consumption Nitrogen represents Millions of Metric Tons Population in Millions 62% of fertilizer consumption Nitrogen fertilizers have…
Solid Industry Fundamentals Fertilizer is Smaller Component of Total Cost NYSE:UAN Corn Prices Continue to Support Fertilizer Use Corn (CBOT) Fertilizer Portion of U.S. Farmer Total Input Costs Price per Bushel 25.0% 9 8 20.0%…
Solid Industry Fundamentals Nitrogen Supply/Demand Imbalance in U.S. NYSE:UAN Fertilizer accounted for 72% of total Total U.S. Nitrogen Supply & Demand nitrogen use in U.S. for 2013 22,000 To meet fertilizer, industrial and other…
Solid Industry Fundamentals Excess Demand Driving Net Imports of UAN NYSE:UAN U.S. Net Imports of UAN were 26% of Demand in 2013 (1) UAN Demand/Supply U.S. Imports of UAN (000s of UAN Short Tons) 14,000 Country 2009 2010 2011 2012…
Solid Industry Fundamentals Fertilizer Prices Remain Attractive NYSE:UAN Market Dynamics Support Stable Pricing Environment Weekly Spot Prices (U.S. Southern Plains) Price per Ton () 800 600 400 200 0 12/14/09…
Solid Industry Fundamentals Corn Inventory Impacts Planting Levels NYSE:UAN USDA Estimates Ended 2013 with Corn Stocks-to-Use of 8.7% -- 45% Lower Than Initial Projection in February 2013 -- U.S. Corn Planted & Yields U.S. Corn…
Blueprint for Success Supported by Positive Industry Backdrop NYSE:UAN Leverage strategically located assets in key markets Incrementally expand plant production and distribution capabilities Selectively evaluate longer term…
Strategically Located Assets NYSE:UAN Located in Farm Belt 53% of corn planted in 2013 was within 45/UAN ton freight rate of plant 15/UAN ton transportation advantage to Corn Belt vs. U.S. Gulf Coast 12
Fully Utilized Capacity NYSE:UAN Capacity: 1,225 tons/day ammonia unit & 3,000 tons/day UAN unit (1) 2013 on-stream efficiency (2) Gasifier: 99.5% Ammonia: 98.9% UAN: 98.0% (1) 1.0 ton of ammonia converts to…
Feed Stock Benefits NYSE:UAN Utilize pet coke as feed stock versus natural gas Anticipated lower production cost compared to competition when Henry Hub natural gas price is higher than approximately 4 per MMBtu 70% of pet coke…
Skilled Management Team Average More Than 30 Years of Experience NYSE:UAN Mark A. Pytosh: CEO & President 28 years William White: EVP Marketing & Operations 37 years Susan M. Ball: CFO & Treasurer 30 years Edmund S.…
Multiple Growth Opportunities NYSE:UAN 12-36 4-5 Current Months Years Operational efficiency Plant expand/enhance Specialty products Distribution/offsite storage Mergers and acquisitions 16
History of Financial Success NYSE:UAN Net Sales EBITDA Product Price Ammonia UAN at Gate (1) Millions (/ton) Millions 400 323.7 700 302.3 200 302.9 600 155.3 150.6 300 500 150 136.6 208.4 180.5 400 200 100 300 67.6 100 200…
2014 Results to Date NYSE:UAN U.S. millions, except product price at gate per ton and per unit data YTD YTD Decrease 6/30/13 6/30/14 UAN Product Price at Gate Per Ton (1) 314 267 15% Ammonia Product Price at Gate Per Ton (1)…
Strong Financial Profile NYSE:UAN (U.S. millions, unless otherwise noted) Capitalization As of 6/30/14 Cash & Equivalents 78.5 Credit Facility due April 2016: Financial Flexibility to Term Loan 125.0 25 million Revolver --…
A Bright Outlook NYSE:UAN Solid industry fundamentals High-quality & strategically located assets Premium product focus Opportunities for growth Experienced management team Pay out 100% of available cash each quarter General…
Appendix
Plant Process Flow Chart NYSE:UAN Linde Air Separation Nitrogen Ammonia Unit Product Oxygen Syngas Ammonia Gasifier (Hydrogen) Ammonia UAN UAN (2 Units) Synthesis Synthesis Product Pet Pet Coke Coke Slag CVR Third…
Non-GAAP Financial Measures NYSE:UAN To supplement the actual results in accordance with U.S. generally accepted accounting principles (GAAP), for the applicable periods, the Partnership also uses certain non-GAAP financial…
Non-GAAP Reconciliation NYSE:UAN EBITDA: Defined as net income before (i) net interest (income) expense; (ii) income tax expense; and (iii) depreciation and amortization expense, which are items management believes affect the…
Activities & Transactions NYSE:UAN January-March April-June July-September October-December Dealer/Distributor Fill Dealer/Distributor Fill Dealer/Distributor Fill Season Orders & Wheat Spring Planting Orders Orders & Fall…
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