CVR Partners, LP Provides Update on UAN Expansion Project; Reaffirms Dividend Guidance for the Year 2012; Provides Dividend Guidance for the Year 2013
January 09, 2013 at 07:50 pm IST
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CVR Partners, LP provided an update regarding the UAN expansion project at its Coffeyville, Kan., fertilizer facility that is expected to increase UAN production capacity to more than 3,000 tons per day. All machinery and equipment for the project has been installed and related infrastructure is in place. However, delays in the commissioning and required testing of certain control equipment have deferred the expansion start-up date until early March. In the interim, the existing fertilizer plant continues to produce ammonia and UAN at full rates.
The company reaffirms its expectation for 2012 full year distributable cash flow in the range of $1.70 to $1.80 per common unit.
While the delayed start-up is anticipated to impact 2013 full year cash available for distribution by approximately 5 cents per common unit, the company continues to expect a significant double-digit increase in cash available for distribution for the full year of 2013 as compared to 2012.
CVR Partners, LP owns and operates the nitrogen fertilizer business. It produces nitrogen fertilizer products at two manufacturing facilities, one located in Coffeyville, Kansas operated by its subsidiary, Coffeyville Resources Nitrogen Fertilizers, LLC (the Coffeyville Facility) and one located in East Dubuque, Illinois operated by its wholly owned subsidiary, East Dubuque Nitrogen Fertilizers, LLC (EDNF). Both facilities manufacture ammonia and are able to further upgrade such ammonia to other nitrogen fertilizer products, principally urea ammonium nitrate (UAN). Nitrogen fertilizer is used by farmers to improve the yield and quality of their crops, primarily corn and wheat. Its products are sold on a wholesale basis in the United States of America. The Coffeyville Facility manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,100 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, LP 
