UAN · CVR Partners, LP

CVR Partners delivered a materially stronger first quarter in 2026, with net income rising 84% year-over-year to $49.9 million and EBITDA increasing 47% to $77.7 million. This performance was driven by two primary factors: significantly higher realized pricing and robust operational execution. Average gate prices for ammonia and UAN surged 24% and 34%, respectively, to $687 and $343 per ton — reflecting tight global nitrogen fertilizer supply amid low domestic and global inventories, geopolitical disruptions in the Middle East and Eastern Europe, and favorable spring planting conditions. Operationally, consolidated ammonia utilization hit 103% — exceeding full capacity — while total ammonia production rose modestly to 220,000 tons (from 216,000 tons in Q1 2025), enabling greater UAN output (335,000 tons vs. 348,000 tons). Despite higher direct operating expenses and depreciation, gross margin expansion was evident: cost of sales grew only 12% ($112.6M vs. $100.4M), while net sales jumped 26% ($180.0M vs. $142.9M), implying improved pricing power and product mix. Management explicitly attributed results to 'favorable market conditions' and 'strong demand,' noting that although planted corn acres are expected to decline ~4% from 2025’s record level, farmer economics remain supportive. The Board’s declaration of a $4.00 per common unit distribution — more than double the $1.75 paid in Q1 2025 — underscores confidence in sustained cash flow generation. With $128.1 million in cash and $75.8 million in operating cash flow for the quarter, liquidity remains healthy despite $13.8 million in capital expenditures, including $6.2 million in growth-related spending. No forward-looking guidance is provided beyond commentary on continued safe operations and market dynamics.