CVR Partners (UAN) 8-K Regulation FD Disclosure

Investor Presentation

May, 2012

Exhibit 99.1

2

Safe Harbor

The

following

information

contains

forward-looking

statements

based

on

management’s

current

expectations

and

beliefs,

as

well

as

a

number

of

assumptions

concerning

future

events.

These

statements

are

subject

to

risks,

uncertainties,

assumptions

and

other

important

factors.

You

are

cautioned

not

to

put

undue

reliance

on

such

forward-looking

statements

(including

forecasts

and

projections

regarding

our

future

performance)

because

actual

results

may

vary

materially

from

those

expressed

or

implied

as

a

result

of

various

factors,

including

those

noted

in

the

Company’s

filings

with

the

Securities

and

Exchange

Commission.

CVR

Partners,

LP

assumes

no

obligation

to,

and

expressly

disclaims

any

obligation

to,

update

or

revise

any

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events or otherwise.

3

Key Strategic Drivers

•

Experienced management team

•

Fully utilized capacity

•

High run time rates

•

Strategically located assets

•

Solid market fundamentals supports

future growth

•

Growth

oriented

partnership

formed

by

CVR

Energy,

Inc.

in

June

2007,

with

IPO

in

April

2011

•

Manufacturing facility produces ammonia and Urea Ammonium Nitrate (UAN)

•

Facility

located

in

Coffeyville,

Kansas

and

produces

5%

of

total

UAN

demand

in

United

States

4

Experienced Management

5

Fully Utilized Capacity &

High Run Rates

(1)  Adjusted for third-party outage.

Strategically Located Assets

•

Located in corn belt

•

56% of corn planted in 2011

was within $40/UAN ton

freight rate of plant

•

$25/ton transportation

advantage to corn belt vs.

U.S. Gulf Coast

•

No intermediate transfer,

storage, barge freight or

pipeline freight charges

6

7

Solid Market Fundamentals

Key Demand Drivers

8

Solid Market Fundamentals

Consistent Fertilizer Demand Growth

•

Nitrogen represents ~63%

of fertilizer consumption

(1)

•

Nitrogen based fertilizers

have most stable demand

because must be applied

annually

–

Primary determinant of crop yield

(1)  Per the International Fertilizer Industry Association.

9

Solid Market Fundamentals

Farmer Profitability Supports Fertilizer Price

•

Corn consumes the largest

amount of nitrogen fertilizer

•

Farmers are expected to generate

substantial proceeds at currently

forecasted corn prices

•

Farmer incentivized to use

nitrogen at corn price much lower

than current spot

•

Nitrogen fertilizer represents

small portion of farmer’s total

input costs

10

Market Fundamentals

Supply/Demand Supports Increased Planting

11

Solid Market Fundamentals

UAN Demand & U.S.

Imports

UAN Demand/Supply

Country

2006

2007

2008

2009

2010

Trinidad & Tobago

0

0

0

0

705

Russia

731

679

865

597

679

Canada

513

621

442

387

396

Romania

232

428

168

26

230

Egypt

0

160

158

0

111

Lithuania

160

466

391

63

72

Ukraine

81

312

157

0

67

Poland

29

129

112

0

0

Estonia

0

0

12

28

106

Netherlands

16

16

26

0

40

Bulgaria

28

53

53

0

30

Germany

105

50

12

63

27

Belarus

86

87

0

0

0

Rest of world

23

35

2

3

1

Total

2,005

3,036

2,395

1,166

2,466

U.S. Imports of UAN

12

Growth Strategies

Current

12-24

Months

3-5   

Years

•

Operational efficiency

•

Plant expansion

•

Specialty products

•

Distribution

•

Mergers and acquisitions

•

Plant development

13

UAN Expansion

•

Overview

–

Increase exposure to strong UAN market

dynamics

–

Expand UAN capacity by 330K tons   

per year (~50%) to ~1MM tons/year

–

Upgrade 100% of ammonia to UAN

–

On-line in early 2013

•

Total cost of $125MM-$130MM

–

$63MM spent through 03/31/12

•

Annualized incremental impact

–

EBITDA: at least $20MM

–

Distributable cash flow: > $0.25 per unit

14

Financial Statistics

15

Solid Start for 2012

2012 Q1

2011 Q1

Change

Sales

$78.3

$57.4

36.4%

EBITDA

(1)

$36.8

$21.3

72.8%

Operating

Income

$31.4

$16.8

86.9%

Distributable

Cash Flow

(2)

$38.2

n/a

n/a

DCF/Unit

(2)

$0.523

n/a

n/a

$US millions, except per unit data

(1)

See page 20 for a reconciliation of net income to EBITDA.

(2)

IPO was in April 2012.

16

A Bright Outlook

•

Strong industry fundamentals

•

High-quality & strategically-located

assets

•

Premium product focus

•

Attractive growth opportunities

•

Pay out 100% of available cash

each quarter

•

No IDR’s

•

Experienced management team

Appendix

18

Fertilizer Plant Schematic

19

Non-GAAP Financial Measures

To

supplement

the

actual

results

in

accordance

with

U.S.

generally

accepted

accounting

principles

(GAAP),

for

the

applicable

periods,

the

Company

also

uses

certain

non-GAAP

financial

measures

as

discussed

below,

which

are

adjusted

for

GAAP-based

results.

The

use

of

non-GAAP

adjustments

are

not

in

accordance

with

or

an

alternative

for

GAAP.

The

adjustments

are

provided

to

enhance

the

overall

understanding

of

the

Company’s

financial

performance

for

the

applicable

periods

and

are

also

indicators

that

management

utilizes

for

planning

and

forecasting

future

periods.

The

non-GAAP

measures

utilized

by

the

Company

are

not

necessarily

comparable

to

similarly

titled

measures

of

other

companies.  

The

Company

believes

that

the

presentation

of

non-GAAP

financial

measures

provides

useful

information

to

investors

regarding

the

Company’s

financial

condition

and

results

of

operations

because

these

measures,

when

used

in

conjunction

with

related

GAAP

financial

measures

(i)

together

provide

a

more

comprehensive

view

of

the

Company’s

core

operations

and

ability

to

generate

cash

flow,

(ii)

provide

investors

with

the

financial

analytical

framework

upon

which

management

bases

financial

and

operational

planning

decisions,

and

(iii)

presents

measurements

that

investors

and

rating

agencies

have

indicated

to

management

are

useful

to

them in assessing the Company and its results of operations. 

20

Non-GAAP Financial Measures

EBITDA:

EBITDA

represents

net

income

before

the

effect

of

interest

expense,

interest

income,

income

tax

expense

(benefit)

and

depreciation

and

amortization.

EBITDA

is

not

a

calculation

based

upon

GAAP;

however,

the

amounts

included

in

EBITDA

are

derived

from

amounts

included

in

the

consolidated

statement

of

operations

of

the

Company. 

See below for reconciliation of net income to EBITDA

and EBITDA less maintenance capital

See below for reconciliation of net income to EBITDA