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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
287 26 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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287I don’t have a formal income statement model. I just use Q2 as having a little Elroy-Wednesday
286<<I think Publius has a tendency to over estimate how good things may be.&Area51-Wednesday
285Retail price info...... DTN Retail Fertilizer Trends Urea Price Climbs 26% SincElroy-Wednesday
284I think Publius has a tendency to over estimate how good things may be. There aElroy-Tuesday
283Reviewing how Publicus modeled the quarter for comparison (I think he used $290 Area51-Tuesday
282UAN has announced the Q3 earnings date as Nov 1st after the close. They'll Elroy1Tuesday
281Best to lock in fertilizer now, farmers warned producer.comElroy-last Saturday
280I'm reading some posts indicating that fertilizer stocks are starting to getElroy-last Friday
279<i>maybe I'm still too bearish on the stock.</i> ?? What is a Elroy-last Friday
278UAN for Q1 delivery is now $550/ton or more...... cmegroup.comElroy-last Friday
277Decent close on option expiration. Holding 80 and since hitting 80 it has gone sArea51-last Friday
276From @JoshLinville: Normally costs 55 - 60 bushels for 1 ton UREA; now costs 135Area51-October 13
275These are "retail" fertilizer spot prices, so not applicable to what UElroy1October 13
274<i> I wouldn't count on fertilizer staying high ad-infinitum unless coElroy-October 13
273I'm just telling you what the CEO of CF said on the topic. I think they belElroy-October 13
272<< Have you heard any announcements by any fertilizer maker that they are Area51-October 13
271Well I Google and I read commentary that agriculture has been and will be a cyclPaul Senior-October 13
270<i>UAN is in such a cyclical business though, I have to ask, do you reallyElroy-October 13
269Interesting past few days. The Nov and Dec 2021 prices have moved up, while 202Elroy-October 13
268re stepped-up basis. When this term is discussed, in my mind I envison middlePaul Senior-October 13
267OK googling the stepped up basis for MLPs I found several sources that claim youArea51-October 13
266It doesn't seem right but it seems to me that UBTI income will be taxed signArea51-October 13
265Supply Disruptions Add Costs Bottlenecks Loom for Critical Ag Supplies https://Elroy-October 12
264CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer manufacturing facility inElroy-October 12
263CVR Energy Names Dane Neumann Executive Vice President & Chief Financial OffElroy-October 12
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