CVR Partners, LP (NYSE: UAN), a manufacturer of ammonia and urea
ammonium nitrate (“UAN”) solution fertilizer products, today
announced a net loss of $17 million, or $1.53 per common unit, on
net sales of $90 million for the fourth quarter 2020, compared to a
net loss of $25 million, or $2.20 per common unit, on net sales of
$86 million for the fourth quarter 2019. EBITDA was $18 million for
the fourth quarter of 2020 compared to $11 million for the fourth
quarter of 2019.
CVR Partners had a net loss of $98 million, or
$8.77 per common unit, on net sales of $350 million for full-year
2020, compared to a net loss of $35 million, or $3.09 per common
unit, on net sales of $404 million for full-year 2019. EBITDA for
full-year 2020 was $41 million compared to $107 million for
2019.
“CVR Partners achieved solid fourth quarter and
full-year 2020 results, led by record ammonia production for the
year, with the Coffeyville and East Dubuque fertilizer plants
posting a combined ammonia utilization rate of 95 percent,” said
Mark Pytosh, Chief Executive Officer of CVR Partners’ general
partner. “The record-breaking operating performance of our
fertilizer facilities coupled with higher product sales volumes
helped offset the lower product pricing that we saw throughout
2020.
“Farmer economics have continued to improve
during the past several months, with corn and soybean prices
increasing by approximately 75 percent since July 2020,” Pytosh
said. “In addition, weather conditions were favorable for both the
harvest and fall ammonia applications, resulting in strong demand.
Looking to the spring, we currently are seeing strong customer
demand for fertilizer application at prices that are significantly
higher than last year.”
Consolidated Operations
For the fourth quarter of 2020, CVR Partners’
average realized gate prices for UAN decreased over the prior year,
down 21 percent to $139 per ton and ammonia decreased 18 percent to
$267 per ton. Average realized gate prices for UAN and ammonia were
$176 per ton and $324 per ton, respectively, for the fourth quarter
of 2019.
CVR Partners’ fertilizer facilities produced a
combined 220,000 tons of ammonia during the fourth quarter of 2020,
of which 75,000 net tons were available for sale while the rest was
upgraded to other fertilizer products, including 335,000 tons of
UAN. During the fourth quarter of 2019, the fertilizer facilities
produced 180,000 tons of ammonia, of which 55,000 net tons were
available for sale while the remainder was upgraded to other
fertilizer products, including 286,000 tons of UAN.
For full-year 2020, the average realized gate
price for UAN decreased 24 percent to $152 per ton, coupled with a
28 percent decrease in ammonia to $284 per ton. Average realized
gate prices for UAN and ammonia were $199 per ton and $392 per ton,
respectively, for the year ended 2019. In 2020, our fertilizer
facilities produced a combined 852,000 tons of ammonia, of which
303,000 net tons were available for sale, while the rest was
upgraded to other fertilizer products, including 1,303,000 tons of
UAN. For the year ended 2019, the fertilizer facilities produced
766,000 tons of ammonia, of which 223,000 net tons were available
for sale while the remainder was upgraded to other fertilizer
products, including 1,255,000 tons of UAN.
Capital Structure
On Nov. 2, 2020, the Partnership announced
that the Board of Directors of its general partner (the “Board”)
had approved a 1-for-10 reverse split of the Partnership’s common
units that was completed on Nov. 23, 2020, pursuant to which
each 10 common units of the Partnership were converted into one
common unit of the Partnership. Following the reverse split, the
number of common units outstanding decreased to approximately 11
million common units, with proportionate adjustments to the common
units under the Partnership’s long-term incentive plan and
outstanding awards thereunder.
The Partnership’s common units began trading on
a split-adjusted basis when markets opened on Nov. 24, 2020,
under the symbol “UAN” and a new CUSIP number. The reverse split
enabled the Partnership to regain compliance with NYSE listing
requirements by the Jan. 1, 2021, deadline. As of Dec. 31,
2020, the average closing price of the Partnership’s common units
over a consecutive 30 trading-day period has remained above the
$1.00 per common unit minimum requirement under the NYSE listing
requirements.
In May 2020, the Board, on behalf of the
Partnership, authorized the Partnership to repurchase up to $10
million of its common units. During the three and twelve months
ended Dec. 31, 2020, on a split-adjusted basis, the Partnership
repurchased 393,777 and 623,177, respectively, of common units on
the open market at a cost of $5 million and $7 million,
respectively, inclusive of transaction costs, or an average price
of $12.19 and $11.35 per common unit, respectively, leaving
approximately $3 million in authorization available under the May
2020 authorization. On Feb. 22, 2021, the Board authorized the
Partnership to repurchase up to an additional $10 million of its
common units. Repurchases under both authorizations may be made
from time-to-time through open market transactions, block trades,
privately negotiated transactions or otherwise and are subject to
market conditions, as well as corporate, regulatory and other
considerations. These authorizations do not obligate the
Partnership to acquire any common units and may be cancelled or
terminated by the Board at any time.
Distributions
CVR Partners will not pay a cash distribution
for the fourth quarter of 2020. CVR Partners is a variable
distribution master limited partnership. As a result, its
distributions, if any, will vary from quarter to quarter due to
several factors, including, but not limited to, its operating
performance, fluctuations in the prices received for its finished
products, maintenance capital expenditures, and cash reserves
deemed necessary or appropriate by the Board.
Fourth Quarter 2020 Earnings Conference
Call
CVR Partners previously announced that it will
host its fourth quarter and full-year 2020 Earnings Conference Call
on Tuesday, Feb. 23, at 11 a.m. Eastern. This Earnings
Conference Call may also include discussion of the Partnership’s
developments, forward-looking information, and other material
information about business and financial matters.
The fourth quarter and full-year 2020 Earnings Conference Call
will be webcast live and can be accessed on the Investor Relations
section of CVR Partners’ website at www.CVRPartners.com. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8029. The webcast will be archived and
available for 14 days at
https://edge.media-server.com/mmc/p/yaypx4aq. A repeat of the call
can be accessed for 14 days by dialing (877) 660-6853, conference
ID 13715422.
Qualified NoticeThis release
serves as a qualified notice to nominees and brokers as provided
for under Treasury Regulation Section 1.1446-4(b). Please note that
100 percent of CVR Partners’ distributions to foreign investors are
attributable to income that is effectively connected with a United
States trade or business. Accordingly, CVR Partners’ distributions
to foreign investors are subject to federal income tax withholding
at the highest effective tax rate.
Forward-Looking StatementsThis
news release contains forward-looking statements. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects, opportunities, plans,
actions and events and other statements, concerns, or matters that
are not historical facts are “forward-looking statements,” as that
term is defined under the federal securities laws. These
forward-looking statements include, but are not limited to,
statements regarding future: continued safe and reliable
operations; impacts of COVID-19, including the duration thereof;
purchases under the Unit Repurchase Program (if any), including the
timing, pricing and amount thereof; ammonia production rates;
utilization rates; ability to offset impact of lower product
pricing; farmer economics, including improvement thereof; corn and
soybean pricing increases; growth of customer demand for fertilizer
applications; finished product pricing, including improvement
thereof; ability to upgrade ammonia to other fertilizer products;
distributions, including the timing, payment and amount (if any)
thereof; direct operating expenses; capital expenditures;
depreciation and amortization; turnaround expense; inventories and
adjustments thereto; other matters. You can generally identify
forward-looking statements by our use of forward-looking
terminology such as “outlook,” “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,”
or “will,” or the negative thereof or other variations thereon or
comparable terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. Investors are cautioned that
various factors may affect these forward-looking statements,
including (among others) the health and economic effects of
COVID-19, the rate of any economic improvement, impacts of planting
season on our business, general economic and business conditions
and other risks. For additional discussion of risk factors which
may affect our results, please see the risk factors and other
disclosures included in our most recent Annual Report on
Form 10-K, any subsequently filed Quarterly Reports on Form
10-Q and our other SEC filings. These and other risks may cause our
actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements
included in this news release are made only as of the date hereof.
CVR Partners disclaims any intention or obligation to update
publicly or revise its forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent required by law.
About CVR Partners,
LPHeadquartered in Sugar Land, Texas, CVR Partners, LP is
a Delaware limited partnership focused on the production, marketing
and distribution of nitrogen fertilizer products. It primarily
produces urea ammonium nitrate (UAN) and ammonia, which are
predominantly used by farmers to improve the yield and quality of
their crops. CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer
manufacturing facility includes a 1,300 ton-per-day ammonia unit, a
3,000 ton-per-day UAN unit and a dual-train gasifier complex having
a capacity of 89 million standard cubic feet per day of hydrogen.
CVR Partners’ East Dubuque, Illinois, nitrogen fertilizer
manufacturing facility includes a 1,075 ton-per-day ammonia unit
and a 1,100 ton-per-day UAN unit.
For further information, please contact:
Investor Relations:Richard RobertsCVR Partners,
LP(281) 207-3205InvestorRelations@CVRPartners.com
Media Relations:Brandee StephensCVR Partners,
LP(281) 207-3516MediaRelations@CVRPartners.com
Non-GAAP Measures
Our management uses certain non-GAAP performance
measures, and reconciliations to those measures, to evaluate
current and past performance and prospects for the future to
supplement our GAAP financial information presented in accordance
with U.S. GAAP. These non-GAAP financial measures are important
factors in assessing our operating results and profitability and
include the performance and liquidity measures defined below.
Effective January 1, 2020, the Partnership no
longer presents the non-GAAP performance measure of Adjusted
EBITDA, as management no longer relies on this financial measure
when evaluating the Partnership’s performance and does not believe
it enhances the users understanding of its financial statements in
a useful manner.
The following are non-GAAP measures presented
for the period ended December 31, 2020:
EBITDA - Net income (loss) before (i) interest
expense, net, (ii) income tax expense (benefit) and (iii)
depreciation and amortization expense.
Reconciliation of Net Cash Provided By Operating
Activities to EBITDA - Net cash provided by operating activities
reduced by (i) interest expense, net, (ii) income tax expense
(benefit), (iii) change in working capital, and (iv) other non-cash
adjustments.
Available Cash for Distribution - EBITDA for the
quarter excluding non-cash income or expense items (if any), for
which adjustment is deemed necessary or appropriate by the board of
directors (the “Board”) of our general partner in its sole
discretion, less (i) reserves for maintenance capital expenditures,
debt service and other contractual obligations, and (ii) reserves
for future operating or capital needs (if any), in each case, that
the Board deems necessary or appropriate in its sole discretion.
Available cash for distribution may be increased by the release of
previously established cash reserves, if any, and other excess
cash, at the discretion of the Board.
We present these measures because we believe
they may help investors, analysts, lenders, and ratings agencies
analyze our results of operations and liquidity in conjunction with
our U.S. GAAP results, including, but not limited to, our operating
performance as compared to other publicly traded companies in the
fertilizer industry, without regard to historical cost basis or
financing methods, and our ability to incur and service debt and
fund capital expenditures. Non-GAAP measures have important
limitations as analytical tools, because they exclude some, but not
all, items that affect net earnings and operating income. These
measures should not be considered substitutes for their most
directly comparable U.S. GAAP financial measures. Refer to the
“Non-GAAP Reconciliations” included herein for reconciliation of
these amounts. Due to rounding, numbers presented within this
section may not add or equal to numbers or totals presented
elsewhere within this document.
Factors Affecting Comparability of Our
Financial Results
Our historical results of operations for the
periods presented may not be comparable with prior periods or to
our results of operations in the future for the reasons discussed
below.
Major Scheduled Turnaround
Activities
Overall, results are negatively impacted due to
lost production during downtimes that result in lost sales and
certain reduced variable expenses included in Cost of materials and
other and Direct operating expenses (exclusive of depreciation and
amortization). The Partnership did not have planned turnarounds
during the year ended December 31, 2020. The effects of the
planned, full facility turnarounds completed during the year ended
December 31, 2019, exclusive of the impacts due to lost
production during the turnaround downtime, are shown below:
Facility |
|
Related Period |
|
Turnaround Downtime |
|
Turnaround Expense(in thousands) |
|
Estimated Lost Production(in tons of Ammonia) |
East Dubuque |
|
2019 - 3rd/4th Quarter |
|
32 days |
|
9,842 |
|
|
33,706 |
|
Goodwill Impairment
As of December 31, 2019, the Partnership
had a goodwill balance of $41.0 million associated with our
Coffeyville Facility reporting unit for which the estimated fair
value had been in excess of carrying value based on our 2018 and
2019 assessments. As a result of lower expectations for market
conditions in the fertilizer industry, the market performance of
the Partnership’s common units, a qualitative analysis, and
additional risks associated with the business, the Partnership
concluded a triggering event had occurred that required an interim
quantitative impairment assessment of goodwill for this reporting
unit as of June 30, 2020. Significant assumptions inherent in
the valuation methodologies for goodwill include, but are not
limited to, prospective financial information, growth rates,
discount rates, inflationary factors, and cost of capital. The
results of the impairment test indicated that the carrying amount
of the Coffeyville Facility reporting unit exceeded the estimated
fair value of the reporting unit, and a full impairment of the
asset was required. No such charge was recognized during 2019.
CVR Partners, LP(unaudited)
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands, except per unit
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Consolidated Statement
of Operations Data |
|
|
|
|
|
|
|
Net sales (1) |
$ |
90,299 |
|
|
|
$ |
86,062 |
|
|
|
$ |
349,953 |
|
|
|
$ |
404,177 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
Cost of materials and other |
23,442 |
|
|
|
22,756 |
|
|
|
91,117 |
|
|
|
94,103 |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
44,230 |
|
|
|
45,622 |
|
|
|
157,916 |
|
|
|
173,629 |
|
Depreciation and amortization |
19,080 |
|
|
|
19,807 |
|
|
|
76,077 |
|
|
|
79,839 |
|
Cost of sales |
86,752 |
|
|
|
88,185 |
|
|
|
325,110 |
|
|
|
347,571 |
|
Selling, general and administrative expenses |
4,135 |
|
|
|
6,195 |
|
|
|
18,174 |
|
|
|
25,829 |
|
Loss on asset disposals |
463 |
|
|
|
768 |
|
|
|
582 |
|
|
|
3,397 |
|
Goodwill impairment |
— |
|
|
|
— |
|
|
|
40,969 |
|
|
|
— |
|
Operating income (loss) |
(1,051 |
) |
|
|
(9,086 |
) |
|
|
(34,882 |
) |
|
|
27,380 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense, net |
(15,877 |
) |
|
|
(15,766 |
) |
|
|
(63,428 |
) |
|
|
(62,636 |
) |
Other income, net |
37 |
|
|
|
40 |
|
|
|
159 |
|
|
|
269 |
|
(Loss) before income tax expense |
(16,891 |
) |
|
|
(24,812 |
) |
|
|
(98,151 |
) |
|
|
(34,987 |
) |
Income tax (benefit)
expense |
(9 |
) |
|
|
70 |
|
|
|
30 |
|
|
|
(18 |
) |
Net loss |
$ |
(16,882 |
) |
|
|
$ |
(24,882 |
) |
|
|
$ |
(98,181 |
) |
|
|
$ |
(34,969 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss per
unit data |
$ |
(1.53 |
) |
|
|
$ |
(2.20 |
) |
|
|
$ |
(8.77 |
) |
|
|
$ |
(3.09 |
) |
Distributions declared per
unit data |
— |
|
|
|
0.70 |
|
|
|
— |
|
|
|
4.00 |
|
|
|
|
|
|
|
|
|
EBITDA* |
$ |
18,066 |
|
|
|
$ |
10,761 |
|
|
|
$ |
41,354 |
|
|
|
$ |
107,488 |
|
Available cash for
distribution* |
— |
|
|
|
(4,517 |
) |
|
|
(11,795 |
) |
|
|
26,677 |
|
|
|
|
|
|
|
|
|
Weighted-average common units
outstanding - basic and diluted |
11,010 |
|
|
|
11,328 |
|
|
|
11,195 |
|
|
|
11,328 |
|
_____________________
- See “Non-GAAP Reconciliations” section below.
- Below are the components of net sales:
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reconciliation to net
sales: |
|
|
|
|
|
|
|
Fertilizer sales |
$ |
78,792 |
|
|
$ |
74,852 |
|
|
$ |
306,490 |
|
|
$ |
363,096 |
|
Freight in revenue |
9,098 |
|
|
9,527 |
|
|
33,329 |
|
|
33,436 |
|
Other |
2,409 |
|
|
1,683 |
|
|
10,134 |
|
|
7,645 |
|
Total net sales |
$ |
90,299 |
|
|
$ |
86,062 |
|
|
$ |
349,953 |
|
|
$ |
404,177 |
|
Selected Balance Sheet Data:
(in thousands) |
December 31, 2020 |
|
December 31, 2019 |
Cash and cash equivalents |
$ |
30,559 |
|
|
$ |
36,994 |
|
Working capital |
41,873 |
|
|
49,429 |
|
Total assets |
1,032,880 |
|
|
1,137,955 |
|
Total long-term debt |
636,182 |
|
|
632,406 |
|
Total liabilities |
718,639 |
|
|
718,411 |
|
Total partners’ capital |
314,241 |
|
|
419,544 |
|
Selected Cash Flow Data:
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net cash flow (used in)
provided by: |
|
|
|
|
|
|
|
Operating activities |
$ |
(9,477 |
) |
|
|
$ |
(29,515 |
) |
|
|
$ |
19,740 |
|
|
|
$ |
39,157 |
|
|
Investing activities |
(3,424 |
) |
|
|
(9,131 |
) |
|
|
(18,550 |
) |
|
|
(18,529 |
) |
|
Financing activities |
(4,825 |
) |
|
|
(8,027 |
) |
|
|
(7,625 |
) |
|
|
(45,410 |
) |
|
Net (decrease) in cash and
cash equivalents |
$ |
(17,726 |
) |
|
|
$ |
(46,673 |
) |
|
|
$ |
(6,435 |
) |
|
|
$ |
(24,782 |
) |
|
Capital Expenditures:
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Maintenance |
$ |
2,206 |
|
|
$ |
7,306 |
|
|
$ |
11,651 |
|
|
$ |
18,247 |
|
Growth |
462 |
|
|
1,216 |
|
|
4,780 |
|
|
2,027 |
|
Total capital expenditures |
$ |
2,668 |
|
|
$ |
8,522 |
|
|
$ |
16,431 |
|
|
$ |
20,274 |
|
Key Operating Data:
Ammonia Utilization Rates (1)
|
Two Years Ended December 31, |
(percent of capacity
utilization) |
2020 |
|
2019 |
Consolidated |
95 |
% |
|
93 |
% |
Coffeyville |
95 |
% |
|
94 |
% |
East Dubuque |
95 |
% |
|
91 |
% |
________________
(1) Reflects our ammonia utilization rates on a
consolidated basis and at each of our facilities. Utilization is an
important measure used by management to assess operational output
at each of the Partnership’s facilities. Utilization is calculated
as actual tons produced divided by capacity. We present our
utilization on a two-year rolling average to take into account the
impact of our current turnaround cycles on any specific period. The
two-year rolling average is a more useful presentation of the
long-term utilization performance of our plants. Additionally, we
present utilization solely on ammonia production rather than each
nitrogen product as it provides a comparative baseline against
industry peers and eliminates the disparity of plant configurations
for upgrade of ammonia into other nitrogen products. With our
efforts being primarily focused on ammonia upgrade capabilities,
this measure provides a meaningful view of how well we operate.
Sales and Production Data
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Consolidated sales (thousand
tons): |
|
|
|
|
|
|
|
Ammonia |
114 |
|
|
62 |
|
|
332 |
|
|
241 |
|
UAN |
325 |
|
|
293 |
|
|
1,312 |
|
|
1,261 |
|
|
|
|
|
|
|
|
|
Consolidated product pricing
at gate (dollars per ton) (1): |
|
|
|
|
|
|
|
Ammonia |
$ |
267 |
|
|
$ |
324 |
|
|
$ |
284 |
|
|
$ |
392 |
|
UAN |
139 |
|
|
176 |
|
|
152 |
|
|
199 |
|
|
|
|
|
|
|
|
|
Consolidated production volume
(thousand tons): |
|
|
|
|
|
|
|
Ammonia (gross produced) (2) |
220 |
|
|
180 |
|
|
852 |
|
|
766 |
|
Ammonia (net available for sale) (2) |
75 |
|
|
55 |
|
|
303 |
|
|
223 |
|
UAN |
335 |
|
|
286 |
|
|
1,303 |
|
|
1,255 |
|
|
|
|
|
|
|
|
|
Feedstock: |
|
|
|
|
|
|
|
Petroleum coke used in production (thousand tons) |
131 |
|
|
131 |
|
|
523 |
|
|
535 |
|
Petroleum coke used in production (dollars per ton) |
$ |
30.65 |
|
|
$ |
39.90 |
|
|
$ |
35.25 |
|
|
$ |
37.47 |
|
Natural gas used in production (thousands of MMBtus) (3) |
2,203 |
|
|
1,646 |
|
|
8,611 |
|
|
6,856 |
|
Natural gas used in production (dollars per MMBtu) (3) |
$ |
2.77 |
|
|
$ |
2.87 |
|
|
$ |
2.31 |
|
|
$ |
2.88 |
|
Natural gas in cost of materials and other (thousands of MMBtus)
(3) |
2,689 |
|
|
1,474 |
|
|
9,349 |
|
|
6,961 |
|
Natural gas in cost of materials and other (dollars per MMBtu)
(3) |
$ |
2.59 |
|
|
$ |
2.58 |
|
|
$ |
2.35 |
|
|
$ |
3.08 |
|
___________________
- Product pricing at gate represents sales less freight revenue
divided by product sales volume in tons and is shown in order to
provide a pricing measure that is comparable across the fertilizer
industry.
- Gross tons produced for ammonia represent total ammonia
produced, including ammonia produced that was upgraded into other
fertilizer products. Net tons available for sale represent ammonia
available for sale that was not upgraded into other fertilizer
products.
- The feedstock natural gas shown above does not include natural
gas used for fuel. The cost of fuel natural gas is included in
direct operating expense.
Key Market Indicators
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Ammonia — Southern plains (dollars per ton) |
$ |
256 |
|
|
$ |
288 |
|
|
$ |
251 |
|
|
$ |
348 |
|
Ammonia — Corn belt (dollars
per ton) |
340 |
|
|
385 |
|
|
337 |
|
|
435 |
|
UAN — Corn belt (dollars per
ton) |
163 |
|
|
189 |
|
|
168 |
|
|
210 |
|
|
|
|
|
|
|
|
|
Natural gas NYMEX (dollars per
MMBtu) |
$ |
2.76 |
|
|
$ |
2.40 |
|
|
$ |
2.13 |
|
|
$ |
2.54 |
|
Q1 2021 Outlook
The table below summarizes our outlook for
certain operational statistics and financial information for the
first quarter of 2021. See “Forward-Looking Statements” above.
|
Q1 2021 |
|
Low |
|
High |
Ammonia utilization rates
(1) |
|
|
|
Consolidated |
90% |
|
95% |
Coffeyville |
90% |
|
95% |
East Dubuque |
90% |
|
95% |
|
|
|
|
Direct operating expenses (2) (in millions) |
$ |
35 |
|
$ |
40 |
Total capital
expenditures (3) (in millions) |
$ |
4 |
|
$ |
7 |
________________
- Ammonia utilization rates exclude the impact of
Turnarounds.
- Direct operating expenses are shown exclusive of depreciation
and amortization, turnaround expenses, and impacts of inventory
adjustments.
- Capital expenditures are disclosed on an accrual basis.
Non-GAAP Reconciliations:
Reconciliation of Net Loss to EBITDA
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net loss |
$ |
(16,882 |
) |
|
$ |
(24,882 |
) |
|
$ |
(98,181 |
) |
|
$ |
(34,969 |
) |
Add: |
|
|
|
|
|
|
|
Interest expense, net |
15,877 |
|
|
15,766 |
|
|
63,428 |
|
|
62,636 |
|
Income tax (benefit) expense |
(9 |
) |
|
70 |
|
|
30 |
|
|
(18 |
) |
Depreciation and amortization |
19,080 |
|
|
19,807 |
|
|
76,077 |
|
|
79,839 |
|
EBITDA |
$ |
18,066 |
|
|
$ |
10,761 |
|
|
$ |
41,354 |
|
|
$ |
107,488 |
|
Reconciliation of Net Cash Provided By (Used In)
Operating Activities to EBITDA
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net cash (used in) provided by operating activities |
$ |
(9,477 |
) |
|
$ |
(29,515 |
) |
|
$ |
19,740 |
|
|
$ |
39,157 |
|
Non-cash items: |
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
— |
|
|
(40,969 |
) |
|
— |
|
Other |
(2,662 |
) |
|
(2,277 |
) |
|
(6,630 |
) |
|
(10,503 |
) |
Add: |
|
|
|
|
|
|
|
Interest expense, net |
15,877 |
|
|
15,766 |
|
|
63,428 |
|
|
62,636 |
|
Income tax (benefit) expense |
(9 |
) |
|
70 |
|
|
30 |
|
|
(18 |
) |
Change in assets and liabilities |
14,337 |
|
|
26,717 |
|
|
5,755 |
|
|
16,216 |
|
EBITDA |
$ |
18,066 |
|
|
$ |
10,761 |
|
|
$ |
41,354 |
|
|
$ |
107,488 |
|
Reconciliation of EBITDA to Available Cash for
Distribution
|
Three Months Ended December
31, |
|
Year Ended December 31, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
EBITDA |
$ |
18,066 |
|
|
$ |
10,761 |
|
|
$ |
41,354 |
|
|
$ |
107,488 |
|
Non-cash items: |
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
— |
|
|
40,969 |
|
|
— |
|
Current reserves for amounts
related to: |
|
|
|
|
|
|
|
Debt service |
(14,997 |
) |
|
(15,472 |
) |
|
(59,995 |
) |
|
(59,997 |
) |
Maintenance capital expenditures |
(2,206 |
) |
|
(6,839 |
) |
|
(11,649 |
) |
|
(18,247 |
) |
Common units repurchased |
(4,799 |
) |
|
— |
|
|
(7,076 |
) |
|
— |
|
Other (reserves for) / releases of amounts reserved for: |
|
|
|
|
|
|
|
Future turnarounds |
(1,500 |
) |
|
— |
|
|
(4,500 |
) |
|
— |
|
Repayment of current portion of long-term debt |
— |
|
|
— |
|
|
(2,240 |
) |
|
— |
|
Recapture of prior negative available cash |
— |
|
|
— |
|
|
(5,917 |
) |
|
— |
|
Future operating needs |
5,436 |
|
|
— |
|
|
(5,308 |
) |
|
(28,000 |
) |
Major scheduled expenditures |
— |
|
|
— |
|
|
2,567 |
|
|
— |
|
Previously established cash reserves |
— |
|
|
7,033 |
|
|
— |
|
|
25,433 |
|
Available cash for distribution
(1) (2) |
$ |
— |
|
|
$ |
(4,517 |
) |
|
$ |
(11,795 |
) |
|
$ |
26,677 |
|
|
|
|
|
|
|
|
|
Common units outstanding |
11,010 |
|
|
11,328 |
|
|
11,195 |
|
|
11,328 |
|
______________________
- Amount represents the cumulative available cash based on full
year results. However, available cash for distribution is
calculated quarterly, with distributions (if any) being paid in the
period following declaration.
- The Partnership paid no cash distributions during 2020.
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