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Non-Tech
UAN - The variable distribution MLP that could go a long way
An SI Board Since March 2021
Posts SubjectMarks Bans Symbol
811 32 0 UAN
Emcee:  Elroy Type:  Moderated
This board is to discuss CVR Partners (ticker - UAN).

CVR partners is a maker of UAN and ammonia fertilizers.

The entity is a Master Limited Partnership (MLP). It pays quarterly distributions based on an internal formula of cash for distribution.

What’s interesting and good about the current UAN story?

1. Least interesting. Congress recently passed a law granting tax credits for a certain type of carbon capture. UAN has been doing this type of carbon capture for a few years. They are researching how best to monetize this new tax credit, and may tell us the result in the Q1 or Q2 2021 conference calls.

2. The fertilizers which UAN sells have moved up in price significantly since January 2021, and are now near decade high price levels. The unit price of UAN has moved up in 2021, but not to a level which one would expect if fertilizer prices are going to stay near their current levels for an extended period. Earlier in about 2012-2013 when fertilizer prices were at similar levels to where they are today, UAN was distributing about $12 per year, and the unit price was above $200.

That’s the story in a nutshell.

Here’s a page that appears to show the futures price for UAN fertilizer.

cmegroup.com

UAN the company generally doesn’t produce much news beyond quarterly financial results. I’d expect this board to become fairly quiet outside of the quarterly results. Recently there have been 3 to 4 articles per month on various agriculture web sites that discuss fertilizer price trends. UAN’s two main fertilizers for sale are UAN32 and anhydrous/ammonia. There are also a few articles per week that discuss changes in the price of corn. Higher corn prices = both more corn planting and more incentive to use fertilizer to improve yields on corn acreage. High corn prices per bushel are very good for fertilizer demand.

Feel free to discuss anything fertilizer or agriculture related. My expertise in both subjects is nil, so we will accept any wild corn conspiracy theories as facts, and eat corn, and wait to see the financial results that UAN may produce in a high priced fertilizer environment.
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ReplyMessage PreviewFromRecsPosted
811Nice writeup on seeking alpha on the UAN value proposition: seekingalpha.com. AArea51-March 19
810If Icahn gets control of 80% of CVR he then has the ability to force the remainiElroy-March 19
809CVR Energy (NYSE: CVI) disclosed Monday it is considering potential strategic tRJCogburn642March 19
808Yes, the results are a real dud. I've sold most of my UAN last summer, and Elroy-February 22
807$1.68RJCogburn64-February 22
806UAN to report after the close on Tuesday. My guess for the distribution is $4.0Elroy-February 19
805Actually that seems like a reasonable approach. I hope that is what they would aArea51-February 5
804<i> if they just lift the units from the IRA and put them in the taxablElroy1February 5
803Right I couldn't find where that partnership debt ratio would be entered on Area51-February 5
802I have a 2022 UAN 990-T. What do you want to know? Which line item?Elroy-February 3
801I would still be interested if you can glean a debt-ratio from any UAN 990-T. AlArea51-February 2
800If you remind me post Dec 28 I'll look into what my 990T said last year, I&#Elroy-12/22/2023
799Hopefully that will work (transfer shares out). That might work for an IRA accouArea51-12/21/2023
798I've asked my brokerage what will happen if I remove an MLP from a Roth to aElroy-12/21/2023
797Did you ever get an answer to your question (circumvent tax by transferring sharArea51-12/21/2023
796I've still got a small chunk of UAN which is exposed to short Nov covered caElroy-10/10/2023
795Earnings to be released 7-31-23 after the close. Diegodiegosan-7/24/2023
794<<I don't think we can say much of anything about future prices for feArea51-7/1/2023
793<i>But I think if demand for UAN stays strong (which correlates roughly wiElroy-6/29/2023
792Well I don't know that the price collapse is over (it's dangerous to makArea51-6/29/2023
791Thanks for the post. I'm still have units, but have reduced position withPaul Senior-6/28/2023
790DTN Retail Fertilizer Trends Nitrogen Products Lead Retail Fertilizer Prices LowElroy-6/28/2023
789My concern now with UAN is I have zero confidence that UAN fertilizer prices wilElroy-6/28/2023
788Interesting post by Publius today (I'll copy it just in case I want to referArea51-6/28/2023
787DTN Retail Fertilizer Trends Anhydrous, UAN32 Lead Fertilizer Prices Lower httElroy-6/21/2023
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