Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 156,312 | $ 112,516 |
Accounts receivable | 35,998 | 88,351 |
Inventories | 85,402 | 52,270 |
Prepaid expenses and other current assets | 5,659 | 9,108 |
Total current assets | 283,371 | 262,245 |
Property, plant, and equipment, net | 820,940 | 850,462 |
Other long-term assets | 14,489 | 14,351 |
Total assets | 1,118,800 | 1,127,058 |
Current liabilities: | ||
Accounts payable | 49,928 | 41,504 |
Accounts payable to affiliates | 11,713 | 8,895 |
Deferred revenue | 4,196 | 87,060 |
Other current liabilities | 29,960 | 24,401 |
Total current liabilities | 95,797 | 161,860 |
Long-term liabilities: | ||
Long-term debt, net | 546,558 | 610,642 |
Other long-term liabilities | 15,259 | 12,358 |
Total long-term liabilities | 561,817 | 623,000 |
Commitments and contingencies (See Note 11) | ||
Partners’ capital: | ||
Common unitholders, 10,569,637 and 10,681,332 units issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 461,185 | 342,197 |
General partner interest | 1 | 1 |
Total partners’ capital | 461,186 | 342,198 |
Total liabilities and partners’ capital | $ 1,118,800 | $ 1,127,058 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 244,000 | $ 138,025 | $ 466,874 | $ 198,945 |
Operating costs and expenses: | ||||
Cost of materials and other | 40,984 | 26,094 | 71,230 | 43,860 |
Direct operating expenses (exclusive of depreciation and amortization) | 48,767 | 53,291 | 109,084 | 90,366 |
Depreciation and amortization | 21,220 | 21,119 | 40,686 | 35,242 |
Cost of sales | 110,971 | 100,504 | 221,000 | 169,468 |
Selling, general and administrative expenses | 7,008 | 6,802 | 15,752 | 12,692 |
Loss on asset disposal | 93 | 405 | 267 | 477 |
Operating income | 125,928 | 30,314 | 229,855 | 16,308 |
Other (expense) income: | ||||
Interest expense, net | (8,308) | (23,334) | (18,343) | (39,251) |
Other income, net | 81 | 40 | 108 | 4,598 |
Income (loss) before income tax expense | 117,701 | 7,020 | 211,620 | (18,345) |
Income tax expense | 119 | 0 | 377 | 19 |
Net income (loss) | $ 117,582 | $ 7,020 | $ 211,243 | $ (18,364) |
Basic earnings (loss) per unit (in dollars per unit) | $ 11.12 | $ 0.66 | $ 19.90 | $ (1.72) |
Diluted earnings (loss) per unit (in dollars per unit) | 11.12 | 0.66 | 19.90 | (1.72) |
Distributions declared per common unit (in dollars per unit) | $ 2.26 | $ 0 | $ 7.50 | $ 0 |
Weighted-average common units outstanding: | ||||
Basic (in units) | 10,570 | 10,681 | 10,617 | 10,688 |
Diluted (in units) | 10,570 | 10,681 | 10,617 | 10,688 |
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, 2020 | 10,705,710 | ||
Beginning balance at Dec. 31, 2020 | 314,241 | 1 | $ 314,240 |
Increase (Decrease) in Partners' Capital | |||
Net income (loss) | (18,364) | ||
Ending balance (in units) at Jun. 30, 2021 | 10,681,332 | ||
Ending balance at Jun. 30, 2021 | 295,348 | 1 | $ 295,347 |
Beginning balance (in units) at Mar. 31, 2021 | 10,681,332 | ||
Beginning balance at Mar. 31, 2021 | 288,328 | 1 | $ 288,327 |
Increase (Decrease) in Partners' Capital | |||
Net income (loss) | 7,020 | $ 7,020 | |
Ending balance (in units) at Jun. 30, 2021 | 10,681,332 | ||
Ending balance at Jun. 30, 2021 | 295,348 | 1 | $ 295,347 |
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 |
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 | |||
Net income (loss) | 211,243 | ||
Ending balance (in units) at Jun. 30, 2022 | 10,569,637 | ||
Ending balance at Jun. 30, 2022 | 461,186 | 1 | $ 461,185 |
Beginning balance (in units) at Mar. 31, 2022 | 10,569,637 | ||
Beginning balance at Mar. 31, 2022 | 367,491 | 1 | $ 367,490 |
Increase (Decrease) in Partners' Capital | |||
Cash distributions to common unitholders - Affiliates | (8,796) | (8,796) | |
Cash distributions to common unitholders - Non-affiliates | (15,091) | (15,091) | |
Net income (loss) | 117,582 | $ 117,582 | |
Ending balance (in units) at Jun. 30, 2022 | 10,569,637 | ||
Ending balance at Jun. 30, 2022 | $ 461,186 | $ 1 | $ 461,185 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 211,243 | $ (18,364) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 40,686 | 35,242 |
Share-based compensation | 11,353 | 9,971 |
Loss on extinguishment of debt | 628 | 7,763 |
Other adjustments | 958 | 2,808 |
Change in assets and liabilities: | ||
Current assets and liabilities | (48,892) | (15,852) |
Non-current assets and liabilities | (365) | 1,411 |
Net cash provided by operating activities | 215,611 | 22,979 |
Cash flows from investing activities: | ||
Capital expenditures | (13,771) | (5,386) |
Proceeds from sale of assets | 41 | 42 |
Net cash used in investing activities | (13,730) | (5,344) |
Cash flows from financing activities: | ||
Repurchase of common units | (12,398) | (529) |
Proceeds from issuance of senior secured notes | 0 | 550,000 |
Principal payments on senior secured notes | (65,000) | (552,240) |
Cash distributions to common unitholders - Affiliates | (29,190) | 0 |
Cash distributions to common unitholders - Non-affiliates | (50,667) | 0 |
Payment of deferred financing costs | (830) | (2,554) |
Other financing activities | 0 | (52) |
Net cash used in financing activities | (158,085) | (5,375) |
Net increase in cash and cash equivalents | 43,796 | 12,260 |
Cash and cash equivalents, beginning of period | 112,516 | 30,559 |
Cash and cash equivalents, end of period | $ 156,312 | $ 42,819 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 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 June 30, 2022 and 2021, the Partnership did not repurchase any common units. During the six months ended June 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through the sunset date of Topic 848, which is currently expected to occur on December 31, 2022. The Partnership has not utilized any of the optional expedients or exceptions available under this guidance and will continue to assess whether this guidance is applicable throughout the effective period. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Finished goods $ 38,930 $ 17,141 Raw materials 1,803 833 Parts, supplies and other 44,669 34,296 Total inventories $ 85,402 $ 52,270 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 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) June 30, 2022 December 31, 2021 Machinery and equipment $ 1,413,757 $ 1,410,203 Buildings and improvements 17,598 17,598 Automotive equipment 16,403 16,433 Land and improvements 14,604 14,199 Construction in progress 23,889 14,167 Other 1,914 2,221 1,488,165 1,474,821 Less: Accumulated depreciation and amortization (667,225) (624,359) Total property, plant and equipment, net $ 820,940 $ 850,462 During the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | (6) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most of our leases include one or more renewal options to extend the lease term from one Balance Sheet Summary as of June 30, 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 June 30, 2022 and December 31, 2021 : June 30, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 4,152 $ — $ 4,570 $ — Real estate and other 2,565 — 2,755 34 Lease liability Railcars 4,152 — 4,570 — Real estate and other 562 — 665 — Lease Expense Summary for the Three and Six Months Ended June 30, 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 and six months ended June 30, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Operating lease expense $ 1,098 $ 1,004 $ 2,157 $ 1,920 Finance lease expense: Amortization of ROU asset 8 29 34 51 Interest expense on lease liability — — — 1 Short-term lease expense 767 430 1,532 590 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 lease liabilities at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.6 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 4.8 % — % 5.1 % — % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s liabilities at June 30, 2022. There were no finance lease payments remaining at June 30, 2022. (in thousands) Operating Leases Remainder of 2022 $ 1,590 2023 1,621 2024 937 2025 522 2026 261 Thereafter 65 Total lease payments 4,996 Less: imputed interest (282) Total lease liability $ 4,714 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 to be classified as a financing lease with an amount of approximately $25 million being capitalized upon lease commencement when the Vessel is placed in service. |
Leases | (6) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most of our leases include one or more renewal options to extend the lease term from one Balance Sheet Summary as of June 30, 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 June 30, 2022 and December 31, 2021 : June 30, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 4,152 $ — $ 4,570 $ — Real estate and other 2,565 — 2,755 34 Lease liability Railcars 4,152 — 4,570 — Real estate and other 562 — 665 — Lease Expense Summary for the Three and Six Months Ended June 30, 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 and six months ended June 30, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Operating lease expense $ 1,098 $ 1,004 $ 2,157 $ 1,920 Finance lease expense: Amortization of ROU asset 8 29 34 51 Interest expense on lease liability — — — 1 Short-term lease expense 767 430 1,532 590 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 lease liabilities at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.6 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 4.8 % — % 5.1 % — % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s liabilities at June 30, 2022. There were no finance lease payments remaining at June 30, 2022. (in thousands) Operating Leases Remainder of 2022 $ 1,590 2023 1,621 2024 937 2025 522 2026 261 Thereafter 65 Total lease payments 4,996 Less: imputed interest (282) Total lease liability $ 4,714 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 to be classified as a financing lease with an amount of approximately $25 million being capitalized upon lease commencement when the Vessel is placed in service. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | (7) Other Current Liabilities Other current liabilities consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Share-based compensation $ 10,605 $ 5,888 Personnel accruals 5,915 7,920 Sales incentives 3,681 1,555 Accrued insurance 2,969 718 Operating lease liabilities 2,387 3,052 Accrued taxes other than income taxes 1,871 1,744 Accrued interest 1,404 1,654 Other accrued expenses and liabilities 1,128 1,870 Total other current liabilities $ 29,960 $ 24,401 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (8) Long-Term Debt Long-term debt consists of the following: (in thousands) June 30, 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) (3,442) (4,358) Total long-term debt $ 546,558 $ 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 $486.6 million and $580.3 million as of June 30, 2022 and December 31, 2021, respectively. These estimates of fair value are a Level 2 measurement, as defined by ASC Topic 820 - Fair Value Measurements and Disclosures , as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (2) For the three and six months ended June 30, 2022, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $0.1 million and $0.3 million, respectively, and for the three and six months ended June 30, 2021, Interest expense, net totaled approximately $1.0 million and $2.0 million, respectively. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of June 30, 2022 Outstanding Letters of Credit Available Capacity as of June 30, 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 and six months ended June 30, 2022, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 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 June 30, 2022. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) 2022 2021 2022 2021 Ammonia $ 60,942 $ 32,097 $ 102,953 $ 41,630 UAN 159,399 87,585 319,006 125,647 Urea products 10,544 6,820 19,767 11,578 Net sales, exclusive of freight and other 230,885 126,502 441,726 178,855 Freight revenue 9,856 8,870 19,071 14,985 Other revenue 3,259 2,653 6,077 5,105 Net sales $ 244,000 $ 138,025 $ 466,874 $ 198,945 Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2022, the Partnership had approximately $7.7 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Partnership expects to recognize approximately $3.6 million of these performance obligations as revenue by the end of 2022, an additional $3.9 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 six months ended June 30, 2022 is presented below: (in thousands) Balance at December 31, 2021 $ 87,060 Add: New prepay contracts entered into during the period (1) 15,556 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (84,015) Revenue recognized related to contracts entered into during the period (13,668) Other changes (737) Balance at June 30, 2022 $ 4,196 (1) Includes $15.5 million where payment associated with prepaid contracts was collected as of June 30, 2022. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | (10) Share-Based Compensation A summary of compensation expense for the three and six months ended June 30, 2022 and 2021 is presented below: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Phantom Unit Awards $ (2,259) $ 5,388 $ 7,653 $ 8,533 Other Awards (1) 1,538 991 3,700 1,438 Total share-based compensation expense $ (721) $ 6,379 $ 11,353 $ 9,971 (1) Other awards include the allocation of compensation expense for certain employees of CVR Energy and its subsidiaries who perform services for the Partnership under the Corporate Master Services Agreement effective January 1, 2020, as amended on April 12, 2022, with certain subsidiaries of CVR Energy (as amended, the “Corporate MSA”) and the Limited Partnership Agreement and participate in equity compensation plans of CVR Energy. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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, the current global and domestic economic environment, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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: Six Months Ended (in thousands) 2022 2021 Supplemental disclosures: Cash paid for interest $ 18,113 $ 32,872 Cash paid for income taxes, net of refunds 27 31 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,790 1,832 Operating cash flows from finance leases — 1 Financing cash flows from finance leases — 52 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable (109) 1,470 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (13) Related Party Transactions Activity associated with the Partnership’s related party arrangements for the three and six months ended June 30, 2022 and 2021 is summarized below. Related Party Activity Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Sales to related parties (1) $ 124 $ 82 $ 172 $ 301 Purchases from related parties (2) 14,590 9,819 29,122 17,823 June 30, 2022 December 31, 2021 Due to related parties (3) $ 7,612 $ 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 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 2022 - 1st Quarter May 23, 2022 2.26 15,091 8,796 23,887 Total 2022 distributions $ 7.50 $ 50,667 $ 29,190 $ 79,857 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 2021 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 second quarter of 2022, the Partnership, upon approval by the Board on August 1, 2022, declared a distribution of $10.05 per common unit, or $106.2 million, which is payable August 22, 2022 to unitholders of record as of August 12, 2022. Of this amount, CVR Energy will receive approximately $39.1 million, with the remaining amount payable to public unitholders. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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 - New Accounting Standards Issued But Not Yet Implemented | 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) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through the sunset date of Topic 848, which is currently expected to occur on December 31, 2022. The Partnership has not utilized any of the optional expedients or exceptions available under this guidance and will continue to assess whether this guidance is applicable throughout the effective period. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Finished goods $ 38,930 $ 17,141 Raw materials 1,803 833 Parts, supplies and other 44,669 34,296 Total inventories $ 85,402 $ 52,270 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant, and equipment | Property, plant and equipment consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Machinery and equipment $ 1,413,757 $ 1,410,203 Buildings and improvements 17,598 17,598 Automotive equipment 16,403 16,433 Land and improvements 14,604 14,199 Construction in progress 23,889 14,167 Other 1,914 2,221 1,488,165 1,474,821 Less: Accumulated depreciation and amortization (667,225) (624,359) Total property, plant and equipment, net $ 820,940 $ 850,462 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021 : June 30, 2022 December 31, 2021 (in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU asset, net Railcars $ 4,152 $ — $ 4,570 $ — Real estate and other 2,565 — 2,755 34 Lease liability Railcars 4,152 — 4,570 — Real estate and other 562 — 665 — |
Schedule of lease expense, terms, and discount rates | For the three and six months ended June 30, 2022 and 2021, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Operating lease expense $ 1,098 $ 1,004 $ 2,157 $ 1,920 Finance lease expense: Amortization of ROU asset 8 29 34 51 Interest expense on lease liability — — — 1 Short-term lease expense 767 430 1,532 590 The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and lease liabilities at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term 2.6 years 0.0 years 2.1 years 0.0 years Weighted-average discount rate 4.8 % — % 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 liabilities at June 30, 2022. There were no finance lease payments remaining at June 30, 2022. (in thousands) Operating Leases Remainder of 2022 $ 1,590 2023 1,621 2024 937 2025 522 2026 261 Thereafter 65 Total lease payments 4,996 Less: imputed interest (282) Total lease liability $ 4,714 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Summary of other current liabilities | Other current liabilities consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Share-based compensation $ 10,605 $ 5,888 Personnel accruals 5,915 7,920 Sales incentives 3,681 1,555 Accrued insurance 2,969 718 Operating lease liabilities 2,387 3,052 Accrued taxes other than income taxes 1,871 1,744 Accrued interest 1,404 1,654 Other accrued expenses and liabilities 1,128 1,870 Total other current liabilities $ 29,960 $ 24,401 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: (in thousands) June 30, 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) (3,442) (4,358) Total long-term debt $ 546,558 $ 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 $486.6 million and $580.3 million as of June 30, 2022 and December 31, 2021, respectively. These estimates of fair value are a Level 2 measurement, as defined by ASC Topic 820 - Fair Value Measurements and Disclosures , as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (2) For the three and six months ended June 30, 2022, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $0.1 million and $0.3 million, respectively, and for the three and six months ended June 30, 2021, Interest expense, net totaled approximately $1.0 million and $2.0 million, respectively. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of June 30, 2022 Outstanding Letters of Credit Available Capacity as of June 30, 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 and six months ended June 30, 2022, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2021, respectively. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table presents the Partnership’s revenue, disaggregated by major product: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Ammonia $ 60,942 $ 32,097 $ 102,953 $ 41,630 UAN 159,399 87,585 319,006 125,647 Urea products 10,544 6,820 19,767 11,578 Net sales, exclusive of freight and other 230,885 126,502 441,726 178,855 Freight revenue 9,856 8,870 19,071 14,985 Other revenue 3,259 2,653 6,077 5,105 Net sales $ 244,000 $ 138,025 $ 466,874 $ 198,945 |
Summary of deferred revenue activity | A summary of the deferred revenue activity for the six months ended June 30, 2022 is presented below: (in thousands) Balance at December 31, 2021 $ 87,060 Add: New prepay contracts entered into during the period (1) 15,556 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (84,015) Revenue recognized related to contracts entered into during the period (13,668) Other changes (737) Balance at June 30, 2022 $ 4,196 (1) Includes $15.5 million where payment associated with prepaid contracts was collected as of June 30, 2022. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | A summary of compensation expense for the three and six months ended June 30, 2022 and 2021 is presented below: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Phantom Unit Awards $ (2,259) $ 5,388 $ 7,653 $ 8,533 Other Awards (1) 1,538 991 3,700 1,438 Total share-based compensation expense $ (721) $ 6,379 $ 11,353 $ 9,971 (1) Other awards include the allocation of compensation expense for certain employees of CVR Energy and its subsidiaries who perform services for the Partnership under the Corporate Master Services Agreement effective January 1, 2020, as amended on April 12, 2022, with certain subsidiaries of CVR Energy (as amended, the “Corporate MSA”) and the Limited Partnership Agreement and participate in equity compensation plans of CVR Energy. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 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: Six Months Ended (in thousands) 2022 2021 Supplemental disclosures: Cash paid for interest $ 18,113 $ 32,872 Cash paid for income taxes, net of refunds 27 31 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,790 1,832 Operating cash flows from finance leases — 1 Financing cash flows from finance leases — 52 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable (109) 1,470 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Activity associated with the Partnership’s related party arrangements for the three and six months ended June 30, 2022 and 2021 is summarized below. Related Party Activity Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Sales to related parties (1) $ 124 $ 82 $ 172 $ 301 Purchases from related parties (2) 14,590 9,819 29,122 17,823 June 30, 2022 December 31, 2021 Due to related parties (3) $ 7,612 $ 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 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 2022 - 1st Quarter May 23, 2022 2.26 15,091 8,796 23,887 Total 2022 distributions $ 7.50 $ 50,667 $ 29,190 $ 79,857 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 2021 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 | 6 Months Ended | ||
Jun. 30, 2022 USD ($) manufacturing_facility shares | Jun. 30, 2021 shares | Jun. 30, 2022 USD ($) manufacturing_facility $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | |
Schedule of Partners' Capital [Line Items] | ||||
Number of manufacturing facilities | manufacturing_facility | 2 | 2 | ||
Percentage of limited partner interest held by the public | 63% | |||
Unit Repurchase Program, authorized amount | $ 20 | $ 20 | ||
Common units repurchased on open market (in units) | shares | 0 | 0 | 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 | $ 0 | ||
CVR Energy, Inc | IEP Energy LLC | ||||
Schedule of Partners' Capital [Line Items] | ||||
Aggregate ownership percentage | 71% | 71% | ||
CVR Partners | CVR Services | ||||
Schedule of Partners' Capital [Line Items] | ||||
Limited partner interest | 37% | |||
CVR Partners | CVR GP | ||||
Schedule of Partners' Capital [Line Items] | ||||
General partner interest | 100% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 38,930 | $ 17,141 |
Raw materials | 1,803 | 833 |
Parts, supplies and other | 44,669 | 34,296 |
Total inventories | $ 85,402 | $ 52,270 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 1,488,165 | $ 1,474,821 |
Less: Accumulated depreciation and amortization | (667,225) | (624,359) |
Total property, plant and equipment, net | 820,940 | 850,462 |
Machinery and equipment | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 1,413,757 | 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 | 16,403 | 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 | 23,889 | 14,167 |
Other | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 1,914 | $ 2,221 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) option | |
Lessee, Lease, Description [Line Items] | |
Number of options to extend the lease term | option | 1 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Lease liability | $ 4,714 | |
Railcars | ||
Operating Leases | ||
ROU asset, net | 4,152 | $ 4,570 |
Lease liability | 4,152 | 4,570 |
Finance Leases | ||
ROU asset, net | 0 | 0 |
Lease liability | 0 | 0 |
Real estate and other | ||
Operating Leases | ||
ROU asset, net | 2,565 | 2,755 |
Lease liability | 562 | 665 |
Finance Leases | ||
ROU asset, net | 0 | 34 |
Lease liability | $ 0 | $ 0 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,098 | $ 1,004 | $ 2,157 | $ 1,920 |
Finance lease expense: | ||||
Amortization of ROU asset | 8 | 29 | 34 | 51 |
Interest expense on lease liability | 0 | 0 | 0 | 1 |
Short-term lease expense | $ 767 | $ 430 | $ 1,532 | $ 590 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term | ||
Operating Leases | 2 years 7 months 6 days | 2 years 1 month 6 days |
Finance Leases | 0 years | 0 years |
Weighted-average discount rate | ||
Operating Leases | 4.80% | 5.10% |
Finance Leases | 0% | 0% |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments (Details) | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Finance lease payments remaining | $ 0 |
Operating Leases | |
Remainder of 2022 | 1,590,000 |
2023 | 1,621,000 |
2024 | 937,000 |
2025 | 522,000 |
2026 | 261,000 |
Thereafter | 65,000 |
Total lease payments | 4,996,000 |
Less: imputed interest | (282,000) |
Total lease liability | $ 4,714,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Share-based compensation | $ 10,605 | $ 5,888 |
Personnel accruals | 5,915 | 7,920 |
Sales incentives | 3,681 | 1,555 |
Accrued insurance | 2,969 | 718 |
Operating lease liabilities | 2,387 | 3,052 |
Accrued taxes other than income taxes | 1,871 | 1,744 |
Accrued interest | 1,404 | 1,654 |
Other accrued expenses and liabilities | 1,128 | 1,870 |
Total other current liabilities | $ 29,960 | $ 24,401 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total other current liabilities | Total other current liabilities |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Unamortized discount and debt issuance costs | $ (3,442) | $ (3,442) | $ (4,358) | ||
Total long-term debt | 546,558 | 546,558 | 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 | 486,600 | 486,600 | 580,300 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Amortization of deferred financing costs | $ 100 | $ 1,000 | $ 300 | $ 2,000 | |
Senior Notes | 9.25% Senior Secured Notes, due June 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage rate | 9.25% | 9.25% | |||
Total long-term debt, net of current portion, before debt issuance costs and discount | $ 0 | $ 0 | 65,000 | ||
Senior Notes | 6.125% Senior Secured Notes, due June 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage rate | 6.125% | 6.125% | |||
Total long-term debt, net of current portion, before debt issuance costs and discount | $ 550,000 | $ 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 | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | |
Line of Credit Facility [Line Items] | |||||
Total Available Borrowing Capacity | $ 35,000 | $ 35,000 | $ 35,000 | ||
Amount Borrowed | 0 | 0 | 0 | ||
Outstanding Letters of Credit | 0 | 0 | 0 | ||
Available Capacity | 35,000 | 35,000 | $ 35,000 | ||
Amortization expense | $ 100 | $ 100 | $ 100 | $ 200 | |
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 | 6 Months Ended | ||
Feb. 22, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Payment for redemption of debt | $ 65,000 | $ 552,240 | |
Loss on extinguishment of debt | 628 | $ 7,763 | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 244,000 | $ 138,025 | $ 466,874 | $ 198,945 |
Net sales, exclusive of freight and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 230,885 | 126,502 | 441,726 | 178,855 |
Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 60,942 | 32,097 | 102,953 | 41,630 |
UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 159,399 | 87,585 | 319,006 | 125,647 |
Urea products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 10,544 | 6,820 | 19,767 | 11,578 |
Freight revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9,856 | 8,870 | 19,071 | 14,985 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,259 | $ 2,653 | $ 6,077 | $ 5,105 |
Revenue - Remaining performance
Revenue - Remaining performance obligations (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 7.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3.6 |
Remaining performance obligation, expected timing of satisfaction, period | 6 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 | $ 3.9 |
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 | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | $ 87,060 |
Add: | |
New prepay contracts entered into during the period | 15,556 |
Less: | |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (84,015) |
Revenue recognized related to contracts entered into during the period | (13,668) |
Other changes | (737) |
Balance at end of period | 4,196 |
Prepaid contracts, payment collected | $ 15,500 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation | ||||
Total share-based compensation expense | $ (721) | $ 6,379 | $ 11,353 | $ 9,971 |
Phantom Unit Awards | ||||
Share-Based Compensation | ||||
Total share-based compensation expense | (2,259) | 5,388 | 7,653 | 8,533 |
Other Awards | ||||
Share-Based Compensation | ||||
Total share-based compensation expense | $ 1,538 | $ 991 | $ 3,700 | $ 1,438 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental disclosures: | ||
Cash paid for interest | $ 18,113 | $ 32,872 |
Cash paid for income taxes, net of refunds | 27 | 31 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 1,790 | 1,832 |
Operating cash flows from finance leases | 0 | 1 |
Financing cash flows from finance leases | 0 | 52 |
Non-cash investing and financing activities: | ||
Change in capital expenditures included in accounts payable | $ (109) | $ 1,470 |
Related Party Transactions - Re
Related Party Transactions - Related Party Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||||
Sales to related parties | $ 124 | $ 82 | $ 172 | $ 301 | |
Purchases from related parties | 14,590 | $ 9,819 | 29,122 | $ 17,823 | |
Due to related parties | $ 7,612 | $ 7,612 | $ 3,580 |
Related Party Transactions - Su
Related Party Transactions - Summary of Distributions Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
May 23, 2022 | Mar. 14, 2022 | Nov. 23, 2021 | Aug. 23, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||||
Distributions paid per common unit (in dollars per unit) | $ 2.26 | $ 5.24 | $ 2.93 | $ 1.72 | $ 7.50 | $ 4.65 |
Distributions paid | $ 23,887 | $ 55,970 | $ 31,297 | $ 18,372 | $ 79,857 | $ 49,669 |
CVR Energy, Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Distributions paid | 8,796 | 20,394 | 11,404 | 6,694 | 29,190 | 18,098 |
Common Units | ||||||
Related Party Transaction [Line Items] | ||||||
Distributions paid | $ 15,091 | $ 35,576 | $ 19,893 | $ 11,678 | $ 50,667 | $ 31,571 |
Related Party Transactions - Di
Related Party Transactions - Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Aug. 12, 2022 | Aug. 01, 2022 | May 23, 2022 | Mar. 14, 2022 | Nov. 23, 2021 | Aug. 23, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||||||||||
Distributions declared per common unit (in dollars per unit) | $ 2.26 | $ 0 | $ 7.50 | $ 0 | |||||||||
Distributions paid per common unit (in dollars per unit) | $ 2.26 | $ 5.24 | $ 2.93 | $ 1.72 | $ 7.50 | $ 4.65 | |||||||
Subsequent Event | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Distributions declared per common unit (in dollars per unit) | $ 10.05 | ||||||||||||
Distribution declared | $ 106.2 | ||||||||||||
CVR Partners | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Distributions declared per common unit (in dollars per unit) | $ 0 | $ 0 | |||||||||||
Distributions paid per common unit (in dollars per unit) | $ 0 | $ 0 | |||||||||||
CVR Energy | Forecast | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from distribution | $ 39.1 |