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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
615 31 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
615I kick myself for not selling at 180. If it gets there I am gone, looking to rebrobert a belfer-1 AM
614UAN has paid $20.24 over the past four quarters. My guess is over the next fourElroy-yesterday
613Thanks! I am very pleased to have finished last. Glad my pessimism was way off.RJCogburn64-last Friday
612Results are in!! My calculations say Paul Senior has won the price and distribuElroy-last Friday
611USDA Reports Summary USDA Lowers Corn Production, Increases Soybean Production Elroy-last Friday
610LSB industireis, LXU Appears company buying a few shares from the secondary/selJerrymac-last Wednesday
609I think the USDA crop report came out today, and modestly weakened the outlook fElroy-last Tuesday
608From CVI's conference call for their Q2 results (CVI owns ~37% of UAN). TheElroy-last Monday
607I paid for a one year membership just today, half off, so $120 per year, all paiElroy-August 7
606How did you resolve not being able to read those Seeking Alpha Publius/UAN articPaul Senior-August 7
605Buy by Aug. 10 (i.e. before Aug. 11), because on Aug 11 it trades "without&Paul Senior-August 7
604Aug 10. To keep it straight, I think of the "ex-" in ex-div to mean Schnullie-August 7
603Distributions CVR Partners also announced that on August 1, 2022, the Board of Elroy-August 7
602 Here are some big picture questions I’d like to ask UAN IR, in order of importElroy1August 7
601I used to be able to read the comments under Publius' UAN articles on SeekinElroy-August 4
600Some nuggets from CF's conference call: our previous full year adjusted EBIElroy-August 2
599Ok, it's time to play a game. UAN is going to announce a distribution along Elroy-August 2
598Tidbits from the Q3 conference call During the second quarter of 2022, we operElroy-August 2
597Yes, I agree UAN looks beautiful at the moment. I spent yesterday all day outElroy-August 2
596CVR Partners Reports Second Quarter 2022 Results and Announces a Cash DistributiElroy-August 2
595Smooth sailing indeed Elroy. I know you were expecting a higher distribution, bFJV-August 2
594UAN management commentary “Looking ahead, we expect industry conditions to reElroy-August 2
593I say highly disappointing....Elroy-August 1
592$10.05 distribution - not bad, not great, but healthy.FJV1August 1
591Fertilizer Prices Are Soaring on Natural Gas Crunch in Europe bloomberg.comElroy-July 31
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