CVR Partners (NYSE:UAN) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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The full earnings call is available at https://events.q4inc.com/attendee/451428767
Summary
CVR Partners reported first quarter 2026 net sales of $180 million and net income of $50 million, with an EBITDA of $78 million.
The company declared a distribution of $4 per common unit, reflecting strong operational performance with ammonia plant utilization at 103%.
Increased sales volumes and pricing for UAN and ammonia were noted, driven by market tightness and geopolitical conflicts impacting global supply.
Capital spending for 2026 is estimated to be between $60 and $75 million, with a significant portion funded through cash reserves.
Management highlighted ongoing projects to increase production capacity and reduce costs, including feedstock diversification and plant debottlenecking efforts.
Full Transcript
OPERATOR
Ladies and gentlemen, thank you for standing by and welcome to the first quarter 2026 CS CVR Partners LP earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during that time, press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star followed by the number one. As a reminder, today’s call is being recorded. I will now hand today’s call over to Richard Roberts, Vice President of FPA and Investor Relations. Please go ahead, sir.
Richard Roberts (Vice President of FPA and Investor Relations)
Good morning everyone. We appreciate your participation in today’s call. With me today are Mark Pytosh, our Chief Executive Officer, Dan Newman, our Chief Financial Officer, Mike Wright, our Chief Operating Officer and other members of management. Prior to discussing our 2026 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. 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 2026 first quarter earnings release that we filed with the SEC for the period. Let me also remind you that we are a variable distribution MLP. We will review our previously established reserves current cash usage, evaluate future anticipated cash needs and may reserve amounts for other future cash needs and as determined by our General Partners Board. As a result, our distributions, if any, will vary from quarter to quarter due to several factors including but not limited to operating performance fluctuations, the prices received, finished products, capital expenditures and cash reserves deemed necessary or appropriate by the Board of Directors of our General Partner. With that said, I’ll turn the call over to Mark Pytosh, our Chief Executive Officer.
Mark Pytosh (Chief Executive Officer)
Mark, thank you. Richard, good morning everyone and thank you for joining us for today’s call. The summarized financial highlights for the first quarter of 2026 include net sales of 180 million net income of 50 million, EBITDA of 78 million and the board of directors declared a first quarter distribution of $4 per common unit, which will be paid on May 18 to unitholders of record at the close of the market on May 11. For the first quarter of 2026, our ammonia plant utilization was 103%, with both plants running well and experiencing minimal downtime during the quarter. We also saw an increase in ammonia sales volume relative to the prior year period along with increased sales prices for UAN (Urea Ammonium Nitrate) and ammonia. The tightness in the nitrogen fertilizer market that began …
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