CVR Partners, LP - 10-Q Summary (Q2 2026)
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2026. CVR Partners, LP is a Delaware limited partnership engaged in the production and distribution of nitrogen fertilizer products, primarily ammonia and urea ammonium nitrate (UAN). Operations are conducted through two facilities: Coffeyville, Kansas (pet coke feedstock) and East Dubuque, Illinois (natural gas feedstock). The company operates as a single reportable segment: Nitrogen Fertilizer.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Sales | $202.2 million | $168.6 million | $382.2 million | $311.4 million |
| Operating Income | $84.8 million | $46.3 million | $142.5 million | $80.9 million |
| Net Income | $77.5 million | $38.8 million | $127.4 million | $65.9 million |
| EPS (Basic & Diluted) | $7.33 | $3.67 | $12.06 | $6.23 |
| EBITDA | $107.1 million | $67.2 million | $184.8 million | $120.1 million |
| Operating Cash Flow (YTD) | $141.7 million (vs. $79.5 million YTD 2025) | |||
| Cash & Equivalents | $137.5 million (as of June 30, 2026) | |||
| Total Debt (Long-term) | $569.0 million (net of current portion) | |||
| Available Liquidity | $187.5 million (Cash + $50M ABL capacity) |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 20% in Q2 and 23% YTD compared to 2025. This was driven primarily by significant price increases for ammonia (+33% Q2, +28% YTD) and UAN (+24% Q2, +28% YTD), attributed to tight global inventories and geopolitical disruptions.
- Profitability: Operating income more than doubled in Q2 ($84.8M vs. $46.3M) due to favorable pricing outpacing volume declines and lower feedstock costs (pet coke prices decreased).
- Volume Trends: Ammonia sales volumes decreased 6% in Q2 due to an early spring application season shifting volume to Q1. UAN volumes decreased 3% in Q2 due to lower consumer demand from fewer corn acres planted.
- Utilization: Consolidated ammonia utilization improved to 99% in Q2 2026 (vs. 91% in Q2 2025) and 101% YTD (vs. 96% YTD 2025), reflecting fewer unplanned outages compared to the prior year.
Guidance, Outlook, and Risks
- Capital Expenditures: Estimated full-year 2026 capital spending is $85.0 million to $95.0 million. This includes maintenance ($49M-$57M) and growth projects ($36M-$38M).
- Strategic Projects: The East Dubuque Facility turnaround is scheduled for August 2026, including a brownfield ammonia expansion expected to increase capacity by ~5%. The Coffeyville Facility is finalizing engineering for dual-feedstock flexibility (natural gas and pet coke).
- Distributions: The Board declared a distribution of $6.08 per common unit for Q2 2026, payable August 17, 2026. Total distributions for the quarter were approximately $64.3 million.
- Risks & Contingencies:
- Geopolitics: Ongoing conflicts in the Middle East and Russia-Ukraine war continue to disrupt supply chains and elevate energy/fertilizer prices.
- Litigation: Multiple lawsuits remain pending regarding an October 2025 ammonia release at the Coffeyville Facility. A medical monitoring claim was dismissed in July 2026, but compensatory and punitive damage claims are ongoing.
- Regulatory: Potential impacts from climate regulations and changes in renewable fuel standards (RFS) affecting corn/soybean demand.
Investor Verification Checklist
- Price Realization: Verify the sustainability of the 28-33% price increases in ammonia and UAN given potential market corrections or increased global supply.
- Feedstock Costs: Monitor pet coke and natural gas price trends, as these are primary cost drivers for the two distinct facilities.
- Turnaround Execution: Assess the impact of the August 2026 East Dubuque turnaround on Q3 production volumes and the success of the planned 5% capacity expansion.
- Litigation Exposure: Review updates on the Coffeyville ammonia release lawsuits to gauge potential liability impacts on future cash flows.
- Strategic Transactions: Monitor disclosures regarding potential strategic transactions involving CVR Energy and Icahn Enterprises, which hold significant ownership stakes.