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 Billions of Metric Tons Population in Billions 61% of fertilizer 200 8 consumption Nitrogen fertilizers…
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 23% of Demand in 2014 (1) UAN Demand/Supply U.S. Imports of UAN (000s of Metric Tons) 14,000 Country 2010 2011 2012 2013…
Solid Industry Fundamentals Fertilizer Prices Remain Attractive NYSE:UAN Market Dynamics Support Stable Pricing Environment Weekly Spot Prices (U.S. Southern Plains) Price per Short Ton 800 700 600 500 400 300 200 100 0…
Solid Industry Fundamentals Corn Inventory Impacts Planting Levels NYSE:UAN USDA Estimates U.S. Ended 2014 with Corn Stocks-to-Use of 13.4% -- CVR Partners Anticipates 88MM to 90MM Acres Will Be Planted in 2015 -- U.S. Corn Planted…
Blueprint for Success NYSE:UAN Leverage strategically located assets in key markets Incrementally expand plant production and distribution capabilities Selectively evaluate longer term opportunities Focused on growing…
Strategically Located Assets NYSE:UAN Located in Farm Belt 49% of corn planted in 2014 was within 45/UAN ton freight rate of plant Transportation cost 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) 2014 on-stream efficiency (2) Gasifier: 98.2% Ammonia: 94.3% UAN: 93.7% (1) 1.0 ton of ammonia converts to…
Feed Stock Benefits NYSE:UAN Utilize pet coke as feed stock versus natural gas Operating costs are competitive to natural gas fed nitrogen fertilizer producers 70% of pet coke requirement contracted through 2027 Abundant supply…
Skilled Management Team NYSE:UAN Mark A. Pytosh: CEO & President 29 years William White: EVP Marketing & Operations 38 years Susan M. Ball: CFO & Treasurer 31 years John R. Walter: SVP, General Counsel & Secretary 13…
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 400 302.3 323.7 700 200 302.9 298.7 600 155.3 150.6 300 500 150 136.6 180.5 110.1 400 200 100 300 100…
Strong Financial Profile NYSE:UAN (U.S. millions, unless otherwise noted) Capitalization As of 12/31/14 Cash & Equivalents 79.9 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. Adjusted EBITDA: Defined as EBITDA further adjusted for…
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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