CVR Partners (NYSE:UAN) reported second-quarter 2026 net income of $78 million, or $7.33 per common unit, as higher nitrogen fertilizer pricing lifted results despite slightly lower sales volumes. The company posted net sales of $202 million, operating income of $85 million and EBITDA of $107 million.
The board declared a quarterly distribution of $6.08 per common unit, payable Aug. 17 to unitholders of record at the close of market on Aug. 10. Interim CFO Richard J. Roberts Jr. said the company calculated $64 million of cash available for distribution after $43 million of cash needs for interest costs, maintenance capital expenditures and other reserves.
Pricing and Operations Drive Year-Over-Year Improvement
CVR Partners sold approximately 333,000 tons of UAN at an average price of $392 per ton and about 54,000 tons of ammonia at an average price of $791 per ton. Compared with the second quarter of 2025, UAN prices increased about 24%, while ammonia prices rose about 33%.
Roberts said the EBITDA increase from the prior-year quarter was primarily attributable to higher sales prices for UAN and ammonia. Sales volumes declined slightly, however, reflecting an earlier spring planting season that moved some sales into the first quarter and weaker UAN demand late in the second quarter as prices rose.
Neumann said conflicts in the Middle East and the effective closure of the Strait of Hormuz tightened global nitrogen fertilizer supplies during the spring, supporting higher prices. While demand was steady across the company’s system, some customers began shifting away from UAN toward the end of planting season because of its elevated price relative to other nitrogen fertilizers.
Costs, Liquidity and Third-Quarter Outlook
Second-quarter direct operating expenses were $59 million. Excluding inventory impacts, direct operating costs increased about $4 million from a year earlier, driven by higher repair and maintenance, catalyst and electricity costs.
Capital spending totaled $17 million during the quarter, including $12 million of maintenance capital. The company expects total 2026 capital spending of approximately $85 million to $95 million, including maintenance capital expenditures of $49 million to $57 million. Management said a significant portion of the profit and growth spending plan is expected to be funded through cash reserves accumulated in prior years.
CVR Partners ended the quarter with total liquidity of $187 million, consisting of $137 million in cash and $50 million of availability under its asset-based lending facility. Less than $1 million of the cash balance was related to customer prepayments for future product deliveries, Roberts said.
For the third quarter, the company expects ammonia utilization of 75% to 80%, reflecting a planned turnaround at its East Dubuque facility. It forecast direct operating expenses, excluding inventory and turnaround effects, of $57 million to $62 million; turnaround expenses of $30 million to $35 million; and total capital spending of $40 million to $49 million.
Second-Half Orders and Project Plans
Neumann said the company completed ammonia summer-fill programs in late June and UAN fill programs in early July, securing what he described as a solid order book for the second half of 2026 at attractive pricing. During the question-and-answer session, he said CVR Partners would not provide specific details about the percentage of production pre-sold.
Management said demand slowed somewhat in June as UAN traded at a wide premium based on nitrogen value, but buyers returned during the fill period. UAN pricing followed the New Orleans benchmark during the seasonal reset, while ammonia held up better, Neumann said. He also noted that ammonia fall prepayments arrived earlier than they did in the prior year.
The company is planning several operational and capacity-related projects. At East Dubuque, the upcoming turnaround is expected to begin at the end of August and include a brownfield expansion intended to increase ammonia production capacity by up to 5%, along with continued work on a water-quality upgrade project.
At Coffeyville, CVR Partners expects to finalize a detailed design and construction plan this year to enable the facility to use natural gas as an alternative to third-party petroleum coke feedstock. The company is no longer planning to invest in obtaining hydrogen from the adjacent Coffeyville refinery.
Chief Operating Officer Mike Wright said the Coffeyville project is likely to be completed in the second half of 2027, with no expected downtime or production-rate impact next year. He said the revised project scope is expected to cost less than half of the original estimate and remain within reserves already established for the project.
Neumann also said Coffeyville recently received certification classifying its ammonia production as low-carbon, and the company is exploring opportunities to market low-carbon ammonia in the United States. Other planned initiatives include a Coffeyville water-system upgrade and expansion of diesel exhaust fluid production and load-out capacity.
Management said the projects are intended to improve reliability and production rates, supporting a target of operating both plants above 95% of nameplate capacity excluding turnaround impacts. Neumann said the board is expected to continue reserving capital as execution and spending on the projects increase.
About CVR Partners (NYSE:UAN)
CVR Partners, L.P. (NYSE: UAN) is a publicly traded master limited partnership focused on the production and marketing of nitrogen fertilizer products. Headquartered in Sugar Land, Texas, the partnership owns and operates two nitrogen fertilizer plants in Coffeyville, Kansas, where it manufactures ammonia, granular urea, and urea ammonium nitrate (UAN) solutions. These products are essential nutrients for a wide range of row and specialty crops, helping growers optimize yield and soil fertility across diverse agricultural applications.
The partnership’s operations center on two integrated facilities connected by pipeline, rail and trucking infrastructure, enabling efficient logistics and year-round production.
