Rob McGuire's questions to CVR Partners LP (UAN) leadership • Q2 2025
Question
Rob McGuire of Granite Research inquired about several operational and strategic topics, including the timing and pricing for the UAN summer fill program, the outlook for fall ammonia prices, and the reasons for the increase in Q2 direct operating costs. He also asked for clarification on recent unplanned downtime, the capacity impact of brownfield projects, and CEO Mark Pytosh's new dual role following the CVR Energy announcement.
Answer
President & CEO Mark Pytosh explained that the UAN summer fill was delayed by strong demand and that the typical seasonal price discount will be much narrower this year. He and EVP & CFO Dane Neumann attributed higher Q2 operating costs to repairs, inventory draws, and elevated electricity and gas prices, which are expected to persist into Q3. Pytosh confirmed that unplanned downtime issues were resolved and detailed how brownfield projects, funded by growth capex, will add significant capacity. He also affirmed his continued commitment to CVR Partners while taking on the CEO role at parent CVR Energy.