Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35120 | |
Entity Registrant Name | CVR PARTNERS, LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-2677689 | |
Entity Address, Address Line One | 2277 Plaza Drive, Suite 500 | |
Entity Address, City or Town | Sugar Land | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77479 | |
City Area Code | 281 | |
Local Phone Number | 207-3200 | |
Title of 12(b) Security | Common units representing limited partner interests | |
Trading Symbol | UAN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,569,637 | |
Entity Central Index Key | 0001425292 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 137,347 | $ 112,516 |
Accounts receivable | 43,577 | 88,351 |
Inventories | 65,192 | 52,270 |
Prepaid expenses and other current assets | 7,623 | 9,108 |
Total current assets | 253,739 | 262,245 |
Property, plant, and equipment, net | 835,713 | 850,462 |
Other long-term assets | 13,249 | 14,351 |
Total assets | 1,102,701 | 1,127,058 |
Current liabilities: | ||
Accounts payable | 49,241 | 41,504 |
Accounts payable to affiliates | 6,081 | 8,895 |
Deferred revenue | 80,877 | 87,060 |
Other current liabilities | 37,007 | 24,401 |
Total current liabilities | 173,206 | 161,860 |
Long-term liabilities: | ||
Long-term debt, net of current portion | 546,439 | 610,642 |
Other long-term liabilities | 15,565 | 12,358 |
Total long-term liabilities | 562,004 | 623,000 |
Commitments and contingencies (See Note 11) | ||
Partners’ capital: | ||
Common unitholders, 10,569,637 and 10,681,332 units issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 367,490 | 342,197 |
General partner interest | 1 | 1 |
Total partners’ capital | 367,491 | 342,198 |
Total liabilities and partners’ capital | $ 1,102,701 | $ 1,127,058 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common unitholders, issued (in units) | 10,569,637 | 10,681,332 |
Common unitholders, outstanding (in units) | 10,569,637 | 10,681,332 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 222,873 | $ 60,921 |
Operating costs and expenses: | ||
Cost of materials and other | 30,246 | 17,766 |
Direct operating expenses (exclusive of depreciation and amortization) | 60,318 | 37,075 |
Depreciation and amortization | 19,465 | 14,123 |
Cost of sales | 110,029 | 68,964 |
Selling, general and administrative expenses | 8,744 | 5,891 |
Loss on asset disposal | 173 | 72 |
Operating income (loss) | 103,927 | (14,006) |
Other (expense) income: | ||
Interest expense, net | (10,036) | (15,916) |
Other income, net | 28 | 4,557 |
Income (loss) before income tax expense | 93,919 | (25,365) |
Income tax expense | 258 | 19 |
Net income (loss) | $ 93,661 | $ (25,384) |
Basic loss per unit (in dollars per unit) | $ 8.78 | $ (2.37) |
Diluted loss per unit (in dollars per unit) | 8.78 | (2.37) |
Distributions declared per common unit (in dollars per unit) | $ 5.24 | $ 0 |
Weighted-average common units outstanding: | ||
Basic (in units) | 10,665 | 10,695 |
Diluted (in units) | 10,665 | 10,695 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | General Partner Interest | Common Units |
Beginning balance (in units) at Dec. 31, 2020 | 10,705,710 | ||
Beginning balance at Dec. 31, 2020 | $ 314,241 | $ 1 | $ 314,240 |
Increase (Decrease) in Partners' Capital | |||
Repurchase of common units (in units) | (24,378) | ||
Repurchase of common units | (529) | $ (529) | |
Net income (loss) | (25,384) | $ (25,384) | |
Ending balance (in units) at Mar. 31, 2021 | 10,681,332 | ||
Ending balance at Mar. 31, 2021 | 288,328 | 1 | $ 288,327 |
Beginning balance (in units) at Dec. 31, 2021 | 10,681,332 | ||
Beginning balance at Dec. 31, 2021 | 342,198 | 1 | $ 342,197 |
Increase (Decrease) in Partners' Capital | |||
Cash distributions to common unitholders - Affiliates | (20,394) | (20,394) | |
Cash distributions to common unitholders - Non-affiliates | (35,576) | $ (35,576) | |
Repurchase of common units (in units) | (111,695) | ||
Repurchase of common units | (12,398) | $ (12,398) | |
Net income (loss) | 93,661 | $ 93,661 | |
Ending balance (in units) at Mar. 31, 2022 | 10,569,637 | ||
Ending balance at Mar. 31, 2022 | $ 367,491 | $ 1 | $ 367,490 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 93,661 | $ (25,384) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 19,465 | 14,123 |
Share-based compensation | 12,074 | 3,592 |
Loss on extinguishment of debt | 628 | 0 |
Other adjustments | 613 | 1,259 |
Change in assets and liabilities: | ||
Current assets and liabilities | 39,991 | 33,782 |
Non-current assets and liabilities | 495 | (1,821) |
Net cash provided by operating activities | 166,927 | 25,551 |
Cash flows from investing activities: | ||
Capital expenditures | (7,899) | (2,994) |
Net cash used in investing activities | (7,899) | (2,994) |
Cash flows from financing activities: | ||
Repurchase of common units | (12,398) | (529) |
Principal payments on senior secured notes | (65,000) | 0 |
Cash distributions to common unitholders - Affiliates | (20,394) | 0 |
Cash distributions to common unitholders - Non-affiliates | (35,576) | 0 |
Payment of deferred financing costs | (829) | 0 |
Other financing activities | 0 | (26) |
Net cash used in financing activities | (134,197) | (555) |
Net increase in cash and cash equivalents | 24,831 | 22,002 |
Cash and cash equivalents, beginning of period | 112,516 | 30,559 |
Cash and cash equivalents, end of period | $ 137,347 | $ 52,561 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business CVR Partners, LP (“CVR Partners” or the “Partnership”) is a Delaware limited partnership formed by CVR Energy, Inc. (together with its subsidiaries, but excluding the Partnership and its subsidiaries, “CVR Energy”) to own, operate and grow its nitrogen fertilizer business. The Partnership produces nitrogen fertilizer products at two manufacturing facilities, one located in Coffeyville, Kansas operated by our wholly owned subsidiary, Coffeyville Resources Nitrogen Fertilizers, LLC (“CRNF”) (the “Coffeyville Facility”) and one located in East Dubuque, Illinois operated by our wholly owned subsidiary, East Dubuque Nitrogen Fertilizers, LLC (“EDNF”) (the “East Dubuque Facility”). Both facilities manufacture ammonia and are able to further upgrade such ammonia to other nitrogen fertilizer products, principally urea ammonium nitrate (“UAN”). Nitrogen fertilizer is used by farmers to improve the yield and quality of their crops, primarily corn and wheat. The Partnership’s products are sold on a wholesale basis in the United States of America. As used in these financial statements, references to CVR Partners, the Partnership, “we”, “us”, and “our” may refer to consolidated subsidiaries of CVR Partners or one or both of the facilities, as the context may require. Interest Holders As of March 31, 2022, public common unitholders held approximately 63% of the Partnership’s outstanding limited partner interests; CVR Services, LLC (“CVR Services”), a wholly owned subsidiary of CVR Energy, held approximately 37% of the Partnership’s outstanding limited partner interests; and CVR GP, LLC (“CVR GP” or the “general partner”), a wholly owned subsidiary of CVR Energy, held 100% of the Partnership’s general partner interest. As of March 31, 2022, Icahn Enterprises L.P. and its affiliates owned approximately 71% of the common stock of CVR Energy. Unit Repurchase Program On May 6, 2020, the board of directors of the Partnership’s general partner (the “Board”), on behalf of the Partnership, authorized a unit repurchase program (the “Unit Repurchase Program”), which was increased on February 22, 2021. The Unit Repurchase Program, as increased, authorized the Partnership to repurchase up to $20 million of the Partnership’s common units. During the three months ended March 31, 2022 and 2021, the Partnership repurchased 111,695 and 24,378 common units, respectively, on the open market in accordance with a repurchase agreement under Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended, at a cost of $12.4 million and $0.5 million, respectively, exclusive of transaction costs, or an average price of $110.98 and $21.69 per common unit, respectively. As of March 31, 2022, the Partnership, considering all repurchases made since inception of the Unit Repurchase Program, had a nominal amount in authority remaining under the Unit Repurchase Program. This Unit Repurchase Program does not obligate the Partnership to repurchase any common units and may be cancelled or terminated by the Board at any time. Management and Operations |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (2) Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the December 31, 2021 audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. In the opinion of the Partnership’s management, the accompanying condensed consolidated financial statements reflect all adjustments that are necessary for fair presentation of the financial position and results of operations of the Partnership for the periods presented. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Certain reclassifications have been made within the condensed consolidated financial statements for prior periods to conform with current presentation. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Results of operations and cash flows for the interim periods presented are not necessarily indicative of the results that will be realized for the year ending December 31, 2022 or any other interim or annual period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | (3) Recent Accounting Pronouncements Recent Accounting Pronouncements - New Accounting Standards Issued But Not Yet Implemented In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). This ASU was issued because, by the end of 2022, banks will no longer be required to report information that is used to determine London Interbank Offered Rate (“LIBOR”), which is used globally by all types of entities. As a result, LIBOR could be discontinued, as well as other interest rates used globally. ASU 2020-04 provides companies with optional expedients for contract modifications under Topics 310, 470, 842, and 815-15, excluded components of certain hedging relationships, fair value hedges, and cash flow hedges, as well as certain exceptions, which are intended to help ease the potential accounting burden associated with transitioning away from these reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies certain optional expedients and exceptions for contract modifications and hedge accounting. Companies can apply the ASU immediately. However, the guidance will only be available for a limited time (generally through December 31, 2022). The Partnership is currently evaluating the impact of adopting this new accounting standard, but does not currently expect it to have a material impact on its consolidated financial statements and related disclosures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Finished goods $ 21,124 $ 17,141 Raw materials 1,734 833 Parts, supplies and other 42,334 34,296 Total inventories $ 65,192 $ 52,270 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (5) Property, Plant and Equipment Property, plant and equipment consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Machinery and equipment $ 1,412,633 $ 1,410,203 Buildings and improvements 17,598 17,598 Automotive equipment 16,429 16,433 Land and improvements 14,604 14,199 Construction in progress 16,803 14,167 Other 2,220 2,221 1,480,287 1,474,821 Less: Accumulated depreciation and amortization (644,574) (624,359) Total property, plant and equipment, net $ 835,713 $ 850,462 As of March 31, 2022, the Partnership had not identified the existence of an impairment indicator for our long-lived asset groups as outlined under Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | (6) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Balance Sheet Summary as of March 31, 2022 and December 31, 2021 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating and finance leases at March 31, 2022 and December 31, 2021 : March 31, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 2,659 8 2,755 34 Lease liability Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 614 — 665 — Lease Expense Summary for the Three Months Ended March 31, 2022 and 2021 We recognize lease expense on a straight-line basis over the lease term and short-term lease expense within Direct operating expenses (exclusive of depreciation and amortization). For the three months ended March 31, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2022 2021 Operating lease expense $ 1,059 $ 916 Finance lease expense: Amortization of ROU asset $ 26 $ 22 Interest expense on lease liability — 1 Short-term lease expense $ 766 $ 160 Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities at March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.0 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 5.1 % — % 5.1 % — % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s ROU assets and liabilities at March 31, 2022. There were no finance lease payments remaining at March 31, 2022. (in thousands) Operating Leases Remainder of 2022 $ 2,307 2023 1,359 2024 676 2025 260 2026 — Thereafter — Total lease payments 4,602 Less: imputed interest (221) Total lease liability $ 4,381 On February 21, 2022, CRNF entered into the First Amendment to the On-Site Product Supply Agreement with Messer LLC (“Messer”), which amended the July 31, 2020 On-Site Product Supply Agreement (as amended, the “Messer Agreement”). Under the Messer Agreement, among other obligations, Messer is obligated to supply and make certain capital improvements during the term of the Messer Agreement, and CRNF is obligated to take as available and pay for, oxygen, nitrogen, and compressed dry air from Messer’s facility. This arrangement for CRNF’s purchase of oxygen, nitrogen, and dry air from Messer does not meet the definition of a lease under FASB ASC Topic 842, Leases (“Topic 842”), as CRNF does not expect to receive substantially all of the output of Messer’s on-site production from its air separation unit over the life of the Messer Agreement. The Messer Agreement also obligates Messer to install a new oxygen storage vessel, related equipment and infrastructure (“Oxygen Storage Vessel” or “Vessel”) to be used solely by the Coffeyville Facility. The arrangement for the use of the Oxygen Storage Vessel meets the definition of a lease under Topic 842, as CRNF will receive all output associated with the Vessel. Based on terms outlined in the Messer Agreement, the Partnership expects the lease of the Oxygen Storage Vessel |
Leases | (6) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Balance Sheet Summary as of March 31, 2022 and December 31, 2021 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating and finance leases at March 31, 2022 and December 31, 2021 : March 31, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 2,659 8 2,755 34 Lease liability Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 614 — 665 — Lease Expense Summary for the Three Months Ended March 31, 2022 and 2021 We recognize lease expense on a straight-line basis over the lease term and short-term lease expense within Direct operating expenses (exclusive of depreciation and amortization). For the three months ended March 31, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2022 2021 Operating lease expense $ 1,059 $ 916 Finance lease expense: Amortization of ROU asset $ 26 $ 22 Interest expense on lease liability — 1 Short-term lease expense $ 766 $ 160 Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities at March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.0 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 5.1 % — % 5.1 % — % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s ROU assets and liabilities at March 31, 2022. There were no finance lease payments remaining at March 31, 2022. (in thousands) Operating Leases Remainder of 2022 $ 2,307 2023 1,359 2024 676 2025 260 2026 — Thereafter — Total lease payments 4,602 Less: imputed interest (221) Total lease liability $ 4,381 On February 21, 2022, CRNF entered into the First Amendment to the On-Site Product Supply Agreement with Messer LLC (“Messer”), which amended the July 31, 2020 On-Site Product Supply Agreement (as amended, the “Messer Agreement”). Under the Messer Agreement, among other obligations, Messer is obligated to supply and make certain capital improvements during the term of the Messer Agreement, and CRNF is obligated to take as available and pay for, oxygen, nitrogen, and compressed dry air from Messer’s facility. This arrangement for CRNF’s purchase of oxygen, nitrogen, and dry air from Messer does not meet the definition of a lease under FASB ASC Topic 842, Leases (“Topic 842”), as CRNF does not expect to receive substantially all of the output of Messer’s on-site production from its air separation unit over the life of the Messer Agreement. The Messer Agreement also obligates Messer to install a new oxygen storage vessel, related equipment and infrastructure (“Oxygen Storage Vessel” or “Vessel”) to be used solely by the Coffeyville Facility. The arrangement for the use of the Oxygen Storage Vessel meets the definition of a lease under Topic 842, as CRNF will receive all output associated with the Vessel. Based on terms outlined in the Messer Agreement, the Partnership expects the lease of the Oxygen Storage Vessel |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | (7) Other Current Liabilities Other current liabilities consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Share-based compensation $ 12,123 $ 5,888 Accrued interest 9,826 1,654 Personnel accruals 5,252 7,920 Sales incentives 2,643 1,555 Operating lease liabilities 2,578 3,052 Accrued taxes other than income taxes 1,642 1,744 Prepaid revenue contracts 140 954 Other accrued expenses and liabilities 2,803 1,634 Total other current liabilities $ 37,007 $ 24,401 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (8) Long-Term Debt Long-term debt consists of the following: (in thousands) March 31, 2022 December 31, 2021 9.25% Senior Secured Notes, due June 2023 (1) $ — $ 65,000 6.125% Senior Secured Notes, due June 2028 (1) 550,000 550,000 Unamortized discount and debt issuance costs (2) (3,561) (4,358) Total long-term debt $ 546,439 $ 610,642 (1) The $65 million outstanding balance of the 9.25% Senior Secured Notes, due June 2023 (the “2023 Notes”) was paid in full on February 22, 2022 at par, plus accrued and unpaid interest. The estimated fair value of the 2023 Notes was approximately $65.1 million as of December 31, 2021. The estimated fair value of the 6.125% Senior Secured Notes, due June 2028 (the “2028 Notes”) was approximately $549.8 million and $580.3 million as of March 31, 2022 and December 31, 2021, respectively. These estimates of fair value are a Level 2 measurement as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (2) For the three months ended March 31, 2022 and 2021, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $0.2 million and $1.0 million, respectively. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2022 Outstanding Letters of Credit Available Capacity as of March 31, 2022 Maturity Date ABL Credit Facility (1) (2) $ 35,000 $ — $ — $ 35,000 September 30, 2024 (1) Beginning September 30, 2021, loans under the Partnership’s ABL Credit Facility bear interest at an annual rate equal to, at the option of the borrowers, (i) (a) 1.615% plus the daily simple Secured Overnight Financing Rate (“SOFR”) or (b) 0.615% plus a base rate, if our quarterly excess availability is greater than or equal to 75%, (ii) (a) 1.865% plus SOFR or (b) 0.865% plus a base rate, if our quarterly excess availability is greater than or equal to 50% but less than 75%, or (iii) (a) 2.115% plus SOFR or (b) 1.115% plus a base rate, otherwise. (2) Amortization expense was $0.1 million and $0.1 million for the three months ended March 31, 2022 and 2021 , respectively. 9.25% Senior Secured Notes due June 2023 On February 22, 2022, the Partnership redeemed all of the outstanding 2023 Notes at par and settled accrued and unpaid interest of approximately $1.1 million through the date of redemption. As a result of this transaction, the Partnership recognized a loss on extinguishment of debt of $0.6 million, which includes the write-off of unamortized deferred financing costs and discount of $0.2 million and $0.4 million, respectively. Covenant Compliance The Partnership and its subsidiaries were in compliance with all covenants under their respective debt instruments as of March 31, 2022. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (9) Revenue The following table presents the Partnership’s revenue, disaggregated by major product: Three Months Ended (in thousands) 2022 2021 Ammonia $ 42,011 $ 9,534 UAN 159,607 38,062 Urea products 9,223 4,758 Net sales, exclusive of freight and other 210,841 52,354 Freight revenue 9,214 6,114 Other revenue 2,818 2,453 Net sales $ 222,873 $ 60,921 Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2022, the Partnership had approximately $10.0 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Partnership expects to recognize approximately $5.8 million of these performance obligations as revenue by the end of 2022, an additional $4.0 million in 2023, and the remaining balance thereafter. Contract Balances The Partnership’s deferred revenue is a contract liability that primarily relates to nitrogen fertilizer sales contracts requiring customer prepayment prior to product delivery to guarantee a price and supply of nitrogen fertilizer. Deferred revenue is recorded at the point in time in which a prepaid contract is legally enforceable and the associated right to consideration is unconditional prior to transferring product to the customer. An associated receivable is recorded for uncollected prepaid contract amounts. Contracts requiring prepayment are generally short-term in nature and, as discussed above, revenue is recognized at the point in time in which the customer obtains control of the product. A summary of the deferred revenue activity for the three months ended March 31, 2022 is presented below: (in thousands) Balance at December 31, 2021 $ 87,060 Add: New prepay contracts entered into during the period (1) 15,246 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (16,968) Revenue recognized related to contracts entered into during the period (4,277) Other changes (184) Balance at March 31, 2022 $ 80,877 (1) Includes $14.2 million where payment associated with prepaid contracts was collected as of March 31, 2022. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | (10) Share-Based Compensation A summary of compensation expense for the three months ended March 31, 2022 and 2021 is presented below: Three Months Ended (in thousands) 2022 2021 Phantom Units $ 9,912 $ 3,145 Other Awards (1) 2,162 447 Total share-based compensation expense $ 12,074 $ 3,592 (1) Other awards include the allocation of compensation expense for certain employees of CVR Energy and certain of its subsidiaries who perform services for the Partnership under the services agreement with CVR Energy and the Limited Partnership Agreement, respectively, and participate in equity compensation plans of CVR Partners’ affiliates. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies There have been no material changes in the Partnership’s commitments and contingencies disclosed in the 2021 Form 10-K. In the ordinary course of business, the Partnership may become party to lawsuits, administrative proceedings, and governmental investigations, including environmental, regulatory, and other matters. The outcome of these matters cannot always be predicted accurately, but the Partnership accrues liabilities for these matters if the Partnership has determined that it is probable a loss has been incurred and the loss can be reasonably estimated. While it is not possible to predict the outcome of such proceedings, if one or more of them were decided against us, the Partnership believes there would be no material impact on its consolidated financial statements. The Partnership continues to monitor its contractual arrangements and customer, vendor, and supplier relationships to determine whether and to what extent, if any, the impacts of the COVID-19 pandemic, the Russia-Ukraine conflict, or ongoing price volatility will impair or excuse the performance of the Partnership or its subsidiaries or their customers, vendors, or suppliers under existing agreements. As of March 31, 2022, the Partnership had not experienced a material financial impact from any actual or threatened impairment of or excuse in its or others’ performance under such agreements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (12) Supplemental Cash Flow Information Cash flows related to income taxes, interest, leases, and capital expenditures and deferred financing costs included in accounts payable are as follows: Three Months Ended (in thousands) 2022 2021 Supplemental disclosures: Cash paid for interest $ 1,164 $ 45 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 898 $ 918 Operating cash flows from finance leases — 1 Financing cash flows from finance leases — 26 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable $ (2,250) $ 131 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (13) Related Party Transactions Activity associated with the Partnership’s related party arrangements for the three months ended March 31, 2022 and 2021 is summarized below. Related Party Activity Three Months Ended (in thousands) 2022 2021 Sales to related parties (1) $ 48 $ 219 Purchases from related parties (2) 14,534 6,693 March 31, 2022 December 31, 2021 Due to related parties (3) $ 4,933 $ 3,580 (1) Sales to related parties, included in Net sales, consist primarily of sales of feedstocks and services to Coffeyville Resources Refining & Marketing, LLC (“CRRM”) under the Master Service Agreement with CRNF (the “Coffeyville MSA”). (2) Purchases from related parties, included in Cost of materials and other, Direct operating expenses (exclusive of depreciation and amortization), and Selling, general and administrative expenses, consist primarily of pet coke and hydrogen purchased from CRRM under the Coffeyville MSA. (3) Due to related parties, included in Accounts payable to affiliates, consists primarily of amounts payable for feedstocks and other supplies and services provided by CRRM and CVR Services under the Coffeyville MSA and the Corporate Master Service Agreement effective January 1, 2020, by and among CVR Services and certain of its affiliates, including the Partnership and our subsidiaries, as amended by that certain Amendment to Corporate Master Service Agreement dated April 12, 2022 (as amended, the “Corporate MSA”). Distributions to CVR Partners’ Unitholders Distributions, if any, including the payment, amount, and timing thereof, are subject to change at the discretion of the Board. The following table presents distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, during 2022 and 2021. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2021 - 4th Quarter March 14, 2022 $ 5.24 $ 35,576 $ 20,394 $ 55,970 Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2021 - 2nd Quarter August 23, 2021 $ 1.72 $ 11,678 $ 6,694 $ 18,372 2021 - 3rd Quarter November 23, 2021 2.93 19,893 11,404 31,297 Total distributions $ 4.65 $ 31,571 $ 18,098 $ 49,669 There were no distributions declared or paid by the Partnership related to the first quarter of 2021 and fourth quarter of 2020. For the first quarter of 2022, the Partnership, upon approval by the Board on May 2, 2022, declared a distribution of $2.26 per common unit, or $23.9 million, which is payable May 23, 2022 to unitholders of record as of May 13, 2022. Of this amount, CVR Energy will receive approximately $8.8 million, with the remaining amount payable to public unitholders. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the December 31, 2021 audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. In the opinion of the Partnership’s management, the accompanying condensed consolidated financial statements reflect all adjustments that are necessary for fair presentation of the financial position and results of operations of the Partnership for the periods presented. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Certain reclassifications have been made within the condensed consolidated financial statements for prior periods to conform with current presentation. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Results of operations and cash flows for the interim periods presented are not necessarily indicative of the results that will be realized for the year ending December 31, 2022 or any other interim or annual period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - New Accounting Standards Issued But Not Yet Implemented In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). This ASU was issued because, by the end of 2022, banks will no longer be required to report information that is used to determine London Interbank Offered Rate (“LIBOR”), which is used globally by all types of entities. As a result, LIBOR could be discontinued, as well as other interest rates used globally. ASU 2020-04 provides companies with optional expedients for contract modifications under Topics 310, 470, 842, and 815-15, excluded components of certain hedging relationships, fair value hedges, and cash flow hedges, as well as certain exceptions, which are intended to help ease the potential accounting burden associated with transitioning away from these reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies certain optional expedients and exceptions for contract modifications and hedge accounting. Companies can apply the ASU immediately. However, the guidance will only be available for a limited time (generally through December 31, 2022). The Partnership is currently evaluating the impact of adopting this new accounting standard, but does not currently expect it to have a material impact on its consolidated financial statements and related disclosures. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Finished goods $ 21,124 $ 17,141 Raw materials 1,734 833 Parts, supplies and other 42,334 34,296 Total inventories $ 65,192 $ 52,270 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant, and equipment | Property, plant and equipment consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Machinery and equipment $ 1,412,633 $ 1,410,203 Buildings and improvements 17,598 17,598 Automotive equipment 16,429 16,433 Land and improvements 14,604 14,199 Construction in progress 16,803 14,167 Other 2,220 2,221 1,480,287 1,474,821 Less: Accumulated depreciation and amortization (644,574) (624,359) Total property, plant and equipment, net $ 835,713 $ 850,462 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of right of use asset and lease liability balances for operating and finance leases | The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating and finance leases at March 31, 2022 and December 31, 2021 : March 31, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 2,659 8 2,755 34 Lease liability Railcars $ 3,767 $ — $ 4,570 $ — Real estate and other 614 — 665 — |
Lease expense, terms, and discount rates | For the three months ended March 31, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2022 2021 Operating lease expense $ 1,059 $ 916 Finance lease expense: Amortization of ROU asset $ 26 $ 22 Interest expense on lease liability — 1 Short-term lease expense $ 766 $ 160 The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities at March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.0 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 5.1 % — % 5.1 % — % |
Summary of remaining minimum lease payments for operating leases | The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s ROU assets and liabilities at March 31, 2022. There were no finance lease payments remaining at March 31, 2022. (in thousands) Operating Leases Remainder of 2022 $ 2,307 2023 1,359 2024 676 2025 260 2026 — Thereafter — Total lease payments 4,602 Less: imputed interest (221) Total lease liability $ 4,381 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Summary of other current liabilities | Other current liabilities consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Share-based compensation $ 12,123 $ 5,888 Accrued interest 9,826 1,654 Personnel accruals 5,252 7,920 Sales incentives 2,643 1,555 Operating lease liabilities 2,578 3,052 Accrued taxes other than income taxes 1,642 1,744 Prepaid revenue contracts 140 954 Other accrued expenses and liabilities 2,803 1,634 Total other current liabilities $ 37,007 $ 24,401 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: (in thousands) March 31, 2022 December 31, 2021 9.25% Senior Secured Notes, due June 2023 (1) $ — $ 65,000 6.125% Senior Secured Notes, due June 2028 (1) 550,000 550,000 Unamortized discount and debt issuance costs (2) (3,561) (4,358) Total long-term debt $ 546,439 $ 610,642 (1) The $65 million outstanding balance of the 9.25% Senior Secured Notes, due June 2023 (the “2023 Notes”) was paid in full on February 22, 2022 at par, plus accrued and unpaid interest. The estimated fair value of the 2023 Notes was approximately $65.1 million as of December 31, 2021. The estimated fair value of the 6.125% Senior Secured Notes, due June 2028 (the “2028 Notes”) was approximately $549.8 million and $580.3 million as of March 31, 2022 and December 31, 2021, respectively. These estimates of fair value are a Level 2 measurement as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (2) For the three months ended March 31, 2022 and 2021, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $0.2 million and $1.0 million, respectively. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2022 Outstanding Letters of Credit Available Capacity as of March 31, 2022 Maturity Date ABL Credit Facility (1) (2) $ 35,000 $ — $ — $ 35,000 September 30, 2024 (1) Beginning September 30, 2021, loans under the Partnership’s ABL Credit Facility bear interest at an annual rate equal to, at the option of the borrowers, (i) (a) 1.615% plus the daily simple Secured Overnight Financing Rate (“SOFR”) or (b) 0.615% plus a base rate, if our quarterly excess availability is greater than or equal to 75%, (ii) (a) 1.865% plus SOFR or (b) 0.865% plus a base rate, if our quarterly excess availability is greater than or equal to 50% but less than 75%, or (iii) (a) 2.115% plus SOFR or (b) 1.115% plus a base rate, otherwise. (2) Amortization expense was $0.1 million and $0.1 million for the three months ended March 31, 2022 and 2021 , respectively. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table presents the Partnership’s revenue, disaggregated by major product: Three Months Ended (in thousands) 2022 2021 Ammonia $ 42,011 $ 9,534 UAN 159,607 38,062 Urea products 9,223 4,758 Net sales, exclusive of freight and other 210,841 52,354 Freight revenue 9,214 6,114 Other revenue 2,818 2,453 Net sales $ 222,873 $ 60,921 |
Summary of deferred revenue activity | A summary of the deferred revenue activity for the three months ended March 31, 2022 is presented below: (in thousands) Balance at December 31, 2021 $ 87,060 Add: New prepay contracts entered into during the period (1) 15,246 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (16,968) Revenue recognized related to contracts entered into during the period (4,277) Other changes (184) Balance at March 31, 2022 $ 80,877 (1) Includes $14.2 million where payment associated with prepaid contracts was collected as of March 31, 2022. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | A summary of compensation expense for the three months ended March 31, 2022 and 2021 is presented below: Three Months Ended (in thousands) 2022 2021 Phantom Units $ 9,912 $ 3,145 Other Awards (1) 2,162 447 Total share-based compensation expense $ 12,074 $ 3,592 (1) Other awards include the allocation of compensation expense for certain employees of CVR Energy and certain of its subsidiaries who perform services for the Partnership under the services agreement with CVR Energy and the Limited Partnership Agreement, respectively, and participate in equity compensation plans of CVR Partners’ affiliates. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash flows related to income taxes, interest, leases, and capital expenditures included in accounts payable | Cash flows related to income taxes, interest, leases, and capital expenditures and deferred financing costs included in accounts payable are as follows: Three Months Ended (in thousands) 2022 2021 Supplemental disclosures: Cash paid for interest $ 1,164 $ 45 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 898 $ 918 Operating cash flows from finance leases — 1 Financing cash flows from finance leases — 26 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable $ (2,250) $ 131 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Activity associated with the Partnership’s related party arrangements for the three months ended March 31, 2022 and 2021 is summarized below. Related Party Activity Three Months Ended (in thousands) 2022 2021 Sales to related parties (1) $ 48 $ 219 Purchases from related parties (2) 14,534 6,693 March 31, 2022 December 31, 2021 Due to related parties (3) $ 4,933 $ 3,580 (1) Sales to related parties, included in Net sales, consist primarily of sales of feedstocks and services to Coffeyville Resources Refining & Marketing, LLC (“CRRM”) under the Master Service Agreement with CRNF (the “Coffeyville MSA”). (2) Purchases from related parties, included in Cost of materials and other, Direct operating expenses (exclusive of depreciation and amortization), and Selling, general and administrative expenses, consist primarily of pet coke and hydrogen purchased from CRRM under the Coffeyville MSA. (3) Due to related parties, included in Accounts payable to affiliates, consists primarily of amounts payable for feedstocks and other supplies and services provided by CRRM and CVR Services under the Coffeyville MSA and the Corporate Master Service Agreement effective January 1, 2020, by and among CVR Services and certain of its affiliates, including the Partnership and our subsidiaries, as amended by that certain Amendment to Corporate Master Service Agreement dated April 12, 2022 (as amended, the “Corporate MSA”). |
Summary of distributions paid | The following table presents distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, during 2022 and 2021. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2021 - 4th Quarter March 14, 2022 $ 5.24 $ 35,576 $ 20,394 $ 55,970 Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2021 - 2nd Quarter August 23, 2021 $ 1.72 $ 11,678 $ 6,694 $ 18,372 2021 - 3rd Quarter November 23, 2021 2.93 19,893 11,404 31,297 Total distributions $ 4.65 $ 31,571 $ 18,098 $ 49,669 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)manufacturing_facility$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | |
Schedule of Partners' Capital [Line Items] | ||
Number of manufacturing facilities | manufacturing_facility | 2 | |
Percentage of limited partner interest held by the public | 63.00% | |
Unit Repurchase Program, authorized amount | $ 20 | |
Common units repurchased on open market (in units) | shares | 111,695 | 24,378 |
Cost, inclusive of transaction costs, of repurchase of outstanding common units | $ 12.4 | $ 0.5 |
Average price per common unit (in dollars per unit) | $ / shares | $ 110.98 | $ 21.69 |
Amount remaining in authority under Unit Repurchase Program | $ 0 | |
CVR Energy, Inc | IEP Energy LLC | ||
Schedule of Partners' Capital [Line Items] | ||
Aggregate ownership percentage | 71.00% | |
CVR Partners | CVR Services | ||
Schedule of Partners' Capital [Line Items] | ||
Limited partner interest | 37.00% | |
CVR Partners | CVR GP | ||
Schedule of Partners' Capital [Line Items] | ||
General partner interest | 100.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 21,124 | $ 17,141 |
Raw materials | 1,734 | 833 |
Parts, supplies and other | 42,334 | 34,296 |
Total inventories | $ 65,192 | $ 52,270 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 1,480,287 | $ 1,474,821 |
Less: Accumulated depreciation and amortization | (644,574) | (624,359) |
Total property, plant and equipment, net | 835,713 | 850,462 |
Machinery and equipment | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 1,412,633 | 1,410,203 |
Buildings and improvements | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 17,598 | 17,598 |
Automotive equipment | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 16,429 | 16,433 |
Land and improvements | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 14,604 | 14,199 |
Construction in progress | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 16,803 | 14,167 |
Other | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 2,220 | $ 2,221 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Lessee, Lease, Description [Line Items] | |
Financing lease not yet commenced, amount expected to be capitalized at commencement | $ 25 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Leases - Balance Sheet Summary
Leases - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Lease liability | $ 4,381 | |
Railcars | ||
Operating Leases | ||
ROU asset, net | 3,767 | $ 4,570 |
Lease liability | 3,767 | 4,570 |
Finance Leases | ||
ROU asset, net | 0 | 0 |
Lease liability | 0 | 0 |
Real estate and other | ||
Operating Leases | ||
ROU asset, net | 2,659 | 2,755 |
Lease liability | 614 | 665 |
Finance Leases | ||
ROU asset, net | 8 | 34 |
Lease liability | $ 0 | $ 0 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,059 | $ 916 |
Finance lease expense: | ||
Amortization of ROU asset | 26 | 22 |
Interest expense on lease liability | 0 | 1 |
Short-term lease expense | $ 766 | $ 160 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term | ||
Operating Leases | 2 years | 2 years 1 month 6 days |
Finance Leases | 0 years | 0 years |
Weighted-average discount rate | ||
Operating Leases | 5.10% | 5.10% |
Finance Leases | 0.00% | 0.00% |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments (Details) | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Finance lease payments remaining | $ 0 |
Operating Leases | |
Remainder of 2022 | 2,307,000 |
2023 | 1,359,000 |
2024 | 676,000 |
2025 | 260,000 |
2026 | 0 |
Thereafter | 0 |
Total lease payments | 4,602,000 |
Less: imputed interest | (221,000) |
Total lease liability | $ 4,381,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Share-based compensation | $ 12,123 | $ 5,888 |
Accrued interest | 9,826 | 1,654 |
Personnel accruals | 5,252 | 7,920 |
Sales incentives | $ 2,643 | $ 1,555 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total other current liabilities | Total other current liabilities |
Operating lease liabilities | $ 2,578 | $ 3,052 |
Accrued taxes other than income taxes | 1,642 | 1,744 |
Prepaid revenue contracts | 140 | 954 |
Other accrued expenses and liabilities | 2,803 | 1,634 |
Total other current liabilities | $ 37,007 | $ 24,401 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ (3,561) | $ (4,358) | |
Total long-term debt | 546,439 | 610,642 | |
9.25% Senior Secured Notes, due June 2023 | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of total long-term debt outstanding | 65,100 | ||
6.125% Senior Secured Notes, due June 2028 | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of total long-term debt outstanding | 549,800 | 580,300 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Amortization of deferred financing costs | $ 200 | $ 1,000 | |
Senior Notes | 9.25% Senior Secured Notes, due June 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage rate | 9.25% | ||
Total long-term debt, net of current portion, before debt issuance costs and discount | $ 0 | 65,000 | |
Senior Notes | 6.125% Senior Secured Notes, due June 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage rate | 6.125% | ||
Total long-term debt, net of current portion, before debt issuance costs and discount | $ 550,000 | $ 550,000 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities Outstanding (Details) - ABL Credit Agreement - Line of Credit - Revolving credit facility - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | |
Line of Credit Facility [Line Items] | |||
Total Available Borrowing Capacity | $ 35,000 | $ 35,000 | |
Amount Borrowed | 0 | 0 | |
Outstanding Letters of Credit | 0 | 0 | |
Available Capacity | 35,000 | $ 35,000 | |
Amortization expense | $ 100 | $ 100 | |
SOFR | Quarterly Excess Availability Greater Than 75% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.615% | ||
SOFR | Quarterly Excess Availability Greater Than 50% But Less Than 75% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.865% | ||
SOFR | Quarterly Excess Availability Not Greater Than 50% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.115% | ||
Base Rate | Quarterly Excess Availability Greater Than 75% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.615% | ||
Base Rate | Quarterly Excess Availability Greater Than 50% But Less Than 75% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.865% | ||
Base Rate | Quarterly Excess Availability Not Greater Than 50% | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.115% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Feb. 22, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||
Payment for redemption of debt | $ 65,000 | $ 0 | |
Loss on extinguishment of debt | 628 | $ 0 | |
9.25% Senior Secured Notes, due June 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Payment for redemption of debt | $ 1,100 | ||
Deferred financing costs | 200 | ||
Unamortized discount | $ 400 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 222,873 | $ 60,921 |
Net sales, exclusive of freight and other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 210,841 | 52,354 |
Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 42,011 | 9,534 |
UAN | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 159,607 | 38,062 |
Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,223 | 4,758 |
Freight revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,214 | 6,114 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,818 | $ 2,453 |
Revenue - Remaining performance
Revenue - Remaining performance obligations (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 10 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 5.8 |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 0.2 |
Remaining performance obligation, expected timing of satisfaction, period |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | $ 87,060 |
Add: | |
New prepay contracts entered into during the period | 15,246 |
Less: | |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (16,968) |
Revenue recognized related to contracts entered into during the period | (4,277) |
Other changes | (184) |
Balance at end of period | 80,877 |
Prepaid contracts, payment collected | $ 14,200 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation | ||
Total share-based compensation expense | $ 12,074 | $ 3,592 |
Phantom Units | ||
Share-Based Compensation | ||
Total share-based compensation expense | 9,912 | 3,145 |
Other Awards | ||
Share-Based Compensation | ||
Total share-based compensation expense | $ 2,162 | $ 447 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental disclosures: | ||
Cash paid for interest | $ 1,164 | $ 45 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 898 | 918 |
Operating cash flows from finance leases | 0 | 1 |
Financing cash flows from finance leases | 0 | 26 |
Non-cash investing and financing activities: | ||
Change in capital expenditures included in accounts payable | $ (2,250) | $ 131 |
Related Party Transactions - Re
Related Party Transactions - Related Party Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Sales to related parties | $ 48 | $ 219 | |
Purchases from related parties | 14,534 | $ 6,693 | |
Due to related parties | $ 4,933 | $ 3,580 |
Related Party Transactions - Su
Related Party Transactions - Summary of Distributions Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 14, 2022 | Nov. 23, 2021 | Aug. 23, 2021 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||||
Distributions paid per common unit (in dollars per unit) | $ 5.24 | $ 2.93 | $ 1.72 | $ 4.65 |
Distributions paid | $ 55,970 | $ 31,297 | $ 18,372 | $ 49,669 |
CVR Energy, Inc | ||||
Related Party Transaction [Line Items] | ||||
Distributions paid | 20,394 | 11,404 | 6,694 | 18,098 |
Common Units | ||||
Related Party Transaction [Line Items] | ||||
Distributions paid | $ 35,576 | $ 19,893 | $ 11,678 | $ 31,571 |
Related Party Transactions - Di
Related Party Transactions - Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | May 23, 2022 | May 02, 2022 | Mar. 14, 2022 | Nov. 23, 2021 | Aug. 23, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||||||||
Distributions declared per common unit (in dollars per unit) | $ 5.24 | $ 0 | ||||||
Distributions paid per common unit (in dollars per unit) | $ 5.24 | $ 2.93 | $ 1.72 | $ 4.65 | ||||
Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distributions declared per common unit (in dollars per unit) | $ 2.26 | |||||||
Distribution declared | $ 23.9 | |||||||
CVR Partners | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distributions declared per common unit (in dollars per unit) | 0 | |||||||
Distributions paid per common unit (in dollars per unit) | $ 0 | |||||||
CVR Energy | Forecast | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from distribution | $ 8.8 |