Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 121,363 | $ 86,339 |
Accounts receivable | 52,738 | 90,448 |
Inventories | 86,643 | 77,518 |
Prepaid expenses and other current assets | 9,918 | 11,399 |
Total current assets | 270,662 | 265,704 |
Property, plant, and equipment, net | 796,627 | 810,994 |
Other long-term assets | 48,990 | 23,704 |
Total assets | 1,116,279 | 1,100,402 |
Current liabilities: | ||
Accounts payable | 27,140 | 45,522 |
Accounts payable to affiliates | 6,722 | 5,302 |
Deferred revenue | 44,871 | 47,516 |
Other current liabilities | 34,621 | 27,717 |
Total current liabilities | 113,354 | 126,057 |
Long-term liabilities: | ||
Long-term debt, net | 546,924 | 546,800 |
Long-term deferred revenue | 38,069 | 0 |
Other long-term liabilities | 15,232 | 15,734 |
Total long-term liabilities | 600,225 | 562,534 |
Commitments and contingencies (See Note 11) | ||
Partners’ capital: | ||
Common unitholders, 10,569,637 and 10,569,637 units issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 402,699 | 411,810 |
General partner interest | 1 | 1 |
Total partners’ capital | 402,700 | 411,811 |
Total liabilities and partners’ capital | $ 1,116,279 | $ 1,100,402 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common units issued (in units) | 10,569,637 | 10,569,637 |
Common units outstanding (in units) | 10,569,637 | 10,569,637 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 226,261 | $ 222,873 |
Operating costs and expenses: | ||
Cost of materials and other | 36,579 | 30,246 |
Direct operating expenses (exclusive of depreciation and amortization) | 57,543 | 60,318 |
Depreciation and amortization | 15,211 | 19,465 |
Cost of sales | 109,333 | 110,029 |
Selling, general and administrative expenses | 7,384 | 8,744 |
Loss on asset disposal | 192 | 173 |
Operating income | 109,352 | 103,927 |
Other (expense) income: | ||
Interest expense, net | (7,173) | (10,036) |
Other (expense) income, net | (265) | 28 |
Income before income tax expense | 101,914 | 93,919 |
Income tax expense | 44 | 258 |
Net income | $ 101,870 | $ 93,661 |
Basic earnings per common unit (in dollars per unit) | $ 9.64 | $ 8.78 |
Diluted earnings per common unit (in dollars per unit) | $ 9.64 | $ 8.78 |
Weighted-average common units outstanding: | ||
Basic (in units) | 10,570 | 10,665 |
Diluted (in units) | 10,570 | 10,665 |
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, 2021 | 10,681,332 | ||
Beginning balance at Dec. 31, 2021 | $ 342,198 | $ 1 | $ 342,197 |
Increase (Decrease) in Partners' Capital | |||
Net income | 93,661 | $ 93,661 | |
Repurchase of common units (in units) | (111,695) | ||
Repurchase of common units | (12,398) | $ (12,398) | |
Cash distributions to common unitholders - Affiliates | (20,394) | (20,394) | |
Cash distributions to common unitholders - Non-affiliates | (35,576) | $ (35,576) | |
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, 2022 | 10,569,637 | ||
Beginning balance at Dec. 31, 2022 | 411,811 | 1 | $ 411,810 |
Increase (Decrease) in Partners' Capital | |||
Net income | 101,870 | 101,870 | |
Cash distributions to common unitholders - Affiliates | (40,866) | (40,866) | |
Cash distributions to common unitholders - Non-affiliates | (70,115) | $ (70,115) | |
Ending balance (in units) at Mar. 31, 2023 | 10,569,637 | ||
Ending balance at Mar. 31, 2023 | $ 402,700 | $ 1 | $ 402,699 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 101,870 | $ 93,661 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,211 | 19,465 |
Share-based compensation | 1,933 | 12,074 |
Loss on extinguishment of debt | 0 | 628 |
Other adjustments | 502 | 613 |
Change in assets and liabilities: | ||
Current assets and liabilities | 10,893 | 39,991 |
Non-current assets and liabilities | 34 | 495 |
Net cash provided by operating activities | 130,443 | 166,927 |
Cash flows from investing activities: | ||
Capital expenditures | (3,438) | (7,899) |
Return on equity method investment | 19,000 | 0 |
Net cash provided by (used in) investing activities | 15,562 | (7,899) |
Cash flows from financing activities: | ||
Repurchase of common units | 0 | (12,398) |
Principal payments on senior secured notes | 0 | (65,000) |
Cash distributions to common unitholders - Affiliates | (40,866) | (20,394) |
Cash distributions to common unitholders - Non-affiliates | (70,115) | (35,576) |
Payment of deferred financing costs | 0 | (829) |
Net cash used in financing activities | (110,981) | (134,197) |
Net increase in cash and cash equivalents | 35,024 | 24,831 |
Cash and cash equivalents, beginning of period | 86,339 | 112,516 |
Cash and cash equivalents, end of period | $ 121,363 | $ 137,347 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023, 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 the remaining 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, 2023, Icahn Enterprises L.P. (“IEP”) 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, 2023, the Partnership had no common unit repurchases. During 2022, the Partnership repurchased 111,695 common units 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, exclusive of transaction costs, or an average price of $110.98 per common unit. As of March 31, 2023, 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 purchase any common units and may be cancelled, modified, or terminated by the Board at any time. Management and Operations The Partnership, including CVR GP, is managed by a combination of the Board, the general partner’s executive officers, CVR Services (as sole member of the general partner), and certain officers of CVR Energy and its subsidiaries, pursuant to the Partnership Agreement, as well as a number of agreements among the Partnership, CVR GP, CVR Energy, and certain of their respective subsidiaries, including a services agreement. See Part II, Item 8 of CVR Partners’ Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) for further discussion. Common unitholders have limited voting rights on matters affecting the Partnership and have no right to elect the general partner’s directors or officers, whether on an annual or continuing basis or otherwise. Section 45Q Transaction We believe that certain carbon oxide capture and sequestration activities conducted at or in connection with the Coffeyville Facility qualify under the Internal Revenue Service (“IRS”) safe harbor described in Revenue Procedure 2020-12 for certain tax credits available to joint ventures under Section 45Q of the Internal Revenue Code of 1986, as amended (“Section 45Q Credits”). In January 2023, CVR Partners and its subsidiary, CRNF, entered into a series of agreements with CapturePoint LLC, an unaffiliated Texas limited liability company, and certain unaffiliated third-party investors intended to qualify under the IRS safe harbor, described in Revenue Procedure 2020-12, for certain joint ventures that are eligible to claim Section 45Q Credits and allow us to monetize Section 45Q Credits we expect to generate from January 6, 2023 until March 31, 2030 (the “45Q Transaction”). Among other items, the 45Q Transaction resulted in the creation of CVR-CapturePoint Parent LLC |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (2) Basis of Presentation The accompanying condensed consolidated financial statements, 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”), include the accounts of CVR Partners and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Certain notes and other information have been condensed or omitted from the condensed consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the December 31, 2022 audited consolidated financial statements and notes thereto included in the 2022 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. The condensed consolidated financial statements are prepared in conformity with GAAP, which requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 2023 or any other interim or annual period. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | (3) Inventories Inventories consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Finished goods $ 36,635 $ 28,630 Raw materials 2,989 3,116 Parts, supplies and other 47,019 45,772 Total inventories $ 86,643 $ 77,518 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (4) Property, Plant and Equipment Property, plant and equipment consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Machinery and equipment $ 1,447,751 $ 1,432,875 Buildings and improvements 17,598 17,461 Automotive equipment 16,377 16,377 Land and improvements 14,604 14,604 Construction in progress 8,541 7,858 Other 2,711 3,035 1,507,581 1,492,210 Less: Accumulated depreciation and amortization (710,953) (681,216) Total property, plant and equipment, net $ 796,627 $ 810,994 During the three months ended March 31, 2023, the Partnership did not identify the existence of an impairment indicator for our long-lived asset groups as outlined under the FASB Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment . For the three months ended March 31, 2023 and 2022, depreciation and amortization expenses were $15.0 million and $19.3 million, respectively. |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | (5) Equity Method Investment In connection with the 45Q Transaction, the Partnership received a 50% ownership interest in CVRP JV in connection with a modification to a carbon oxide contract (“CO Contract”) with a customer. The Partnership applied the variable interest entity (“VIE”) model under FASB ASC Topic 810, Consolidation, to its variable interest in CVRP JV and determined that CVRP JV is a VIE. While the Partnership concluded it is not the primary beneficiary of CVRP JV, it does have significant influence over CVRP JV’s operating and financial policies and, therefore, applies the equity method of accounting for its investment in CVRP JV. The Partnership valued the equity interest received using a combination of the market approach and the discounted cash flow methodology with key inputs including the discount rate, contractual and expected future cash flows, and market multiples. The Partnership determined the estimated fair value of the consideration received to be $46.0 million, which is a non-recurring Level 3 measurement, as defined by FASB ASC Topic 820, Fair Value Measurements , based on the use of the Partnership’s own assumptions described above. There were no transfers into or out of Level 3 during the three months ended March 31, 2023. The Partnership will defer the recognition of the noncash consideration received and expects to recognize such revenue as the performance obligation associated with the CO Contract is satisfied. Refer to Note 9 (“Revenue”) for further discussion. The Partnership has elected to record its share of the earnings or loss of CVRP JV one quarter in arrears. Distributions received from CVRP JV will reduce the Partnership’s equity method investment and will be recorded in the period they are received. The investment in CVRP JV is presented within Other long-term assets on our condensed consolidated financial statements. (in thousands) CVRP JV Balance at inception $ 46,000 Cash distributions (1) (19,000) Cash contributions 2 Balance at March 31, 2023 $ 27,002 (1) Of this amount, approximately $0.9 million related to incremental costs associated with obtaining the CO contract were capitalized and included in Prepaid expenses and other current assets and Other long-term assets in our condensed consolidated financial statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
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, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased property. Additionally, certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Furthermore, we do not have any material lessor or sub-leasing arrangements. Balance Sheet Summary as of March 31, 2023 and December 31, 2022 The following table summarizes the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating leases at March 31, 2023 and December 31, 2022. There were no finance lease balances at March 31, 2023 and December 31, 2022. (in thousands) March 31, 2023 December 31, 2022 ROU asset, net Railcars $ 9,638 $ 10,449 Real estate and other 2,272 2,370 Lease liability Railcars 9,638 10,449 Real estate and other 402 456 Lease Expense Summary for the Three Months Ended March 31, 2023 and 2022 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, 2023 and 2022, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2023 2022 Operating lease expense $ 1,223 $ 1,059 Finance lease expense: Amortization of ROU asset — 26 Short-term lease expense 650 766 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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted-average remaining lease term 4.1 years 4.3 years Weighted-average discount rate 5.9 % 5.5 % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s liabilities at March 31, 2023. (in thousands) Operating Leases Remainder of 2023 $ 3,402 2024 2,718 2025 2,302 2026 2,042 2027 1,756 Total lease payments 12,220 Less: imputed interest (2,180) Total lease liability $ 10,040 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 oxygen and make certain capital improvements during the term of the Messer Agreement, and CRNF is obligated to take as available and pay for oxygen from Messer’s facility. This arrangement for CRNF’s purchase of oxygen 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, which includes oxygen, nitrogen, and compressed air, 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 estimated amount within the range of $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to happen within the next 12 months. |
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, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased property. Additionally, certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Furthermore, we do not have any material lessor or sub-leasing arrangements. Balance Sheet Summary as of March 31, 2023 and December 31, 2022 The following table summarizes the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating leases at March 31, 2023 and December 31, 2022. There were no finance lease balances at March 31, 2023 and December 31, 2022. (in thousands) March 31, 2023 December 31, 2022 ROU asset, net Railcars $ 9,638 $ 10,449 Real estate and other 2,272 2,370 Lease liability Railcars 9,638 10,449 Real estate and other 402 456 Lease Expense Summary for the Three Months Ended March 31, 2023 and 2022 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, 2023 and 2022, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2023 2022 Operating lease expense $ 1,223 $ 1,059 Finance lease expense: Amortization of ROU asset — 26 Short-term lease expense 650 766 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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted-average remaining lease term 4.1 years 4.3 years Weighted-average discount rate 5.9 % 5.5 % Maturities of Lease Liabilities The following summarizes the remaining minimum operating lease payments through maturity of the Partnership’s liabilities at March 31, 2023. (in thousands) Operating Leases Remainder of 2023 $ 3,402 2024 2,718 2025 2,302 2026 2,042 2027 1,756 Total lease payments 12,220 Less: imputed interest (2,180) Total lease liability $ 10,040 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 oxygen and make certain capital improvements during the term of the Messer Agreement, and CRNF is obligated to take as available and pay for oxygen from Messer’s facility. This arrangement for CRNF’s purchase of oxygen 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, which includes oxygen, nitrogen, and compressed air, 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 estimated amount within the range of $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to happen within the next 12 months. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | (7) Other Current Liabilities Other current liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued interest $ 9,826 $ 1,404 Share-based compensation 9,788 9,231 Personnel accruals 5,105 7,539 Operating lease liabilities 2,698 2,931 Sales incentives 2,537 1,772 Accrued insurance 2,184 2,283 Accrued taxes other than income taxes 1,706 1,789 Other accrued expenses and liabilities 777 768 Total other current liabilities $ 34,621 $ 27,717 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (8) Long-Term Debt Long-term debt consists of the following: (in thousands) March 31, 2023 December 31, 2022 6.125% Senior Secured Notes, due June 2028 (1) $ 550,000 $ 550,000 Unamortized discount and debt issuance costs (3,076) (3,200) Total long-term debt $ 546,924 $ 546,800 (1) The estimated fair value of the 6.125% Senior Secured Notes, due June 2028 (the “2028 Notes”) was approximately $488.1 million and $493.3 million as of March 31, 2023 and December 31, 2022, respectively. These estimates of fair value are a Level 2 measurement, as defined by FASB ASC Topic 820, Fair Value Measurements , as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2023 Outstanding Letters of Credit Available Capacity as of March 31, 2023 Maturity Date ABL Credit Facility $ 35,000 $ — $ — $ 35,000 September 30, 2024 Covenant Compliance The Partnership and its subsidiaries were in compliance with all covenants under their respective debt instruments as of March 31, 2023. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (9) Revenue The following table presents the Partnership’s revenue, disaggregated by major products: Three Months Ended (in thousands) 2023 2022 Ammonia $ 37,499 $ 42,011 UAN 164,341 159,607 Urea products 8,170 9,223 Net sales, exclusive of freight and other 210,010 210,841 Freight revenue (1) 10,936 9,214 Other revenue (2) 5,315 2,818 Total revenue $ 226,261 $ 222,873 (1) Freight revenue recognized by the Partnership represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. (2) Includes revenue from (i) nitric acid sales and (ii) in connection with the 45Q Transaction, carbon oxide sales and noncash consideration received, which is recognized as the performance obligation associated with the CO Contract is satisfied over its term of seven years, three months. Revenue from the CO Contract is recognized over time based on carbon oxide volumes measured at delivery. Remaining Performance Obligations We have spot and term contracts with customers and the transaction prices are either fixed or based on market indices (variable consideration). We do not disclose remaining performance obligations for contracts that have terms of one year or less and for contracts where the variable consideration was entirely allocated to an unsatisfied performance obligation. As of March 31, 2023, the Partnership had approximately $3.2 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Partnership expects to recognize approximately $3.0 million of these performance obligations as revenue by the end of 2023 and the remaining balance during 2024. Contract Balances A summary of the deferred revenue activity for the three months ended March 31, 2023 is presented below: (in thousands) Balance at December 31, 2022 $ 47,516 Add: New prepay contracts entered into during the period 13,069 Noncash consideration received as part of the 45Q Transaction 46,000 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (11,851) Revenue recognized related to contracts entered into during the period (9,712) Revenue recognized related to noncash consideration (1,586) Other changes (496) Total deferred revenue 82,940 Less current portion of deferred revenue (44,871) Total long-term deferred revenue $ 38,069 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | (10) Share-Based Compensation A summary of compensation expense for the three months ended March 31, 2023 and 2022 is presented below: Three Months Ended (in thousands) 2023 2022 Phantom Unit Awards $ 908 $ 9,912 Other Awards (1) 1,025 2,162 Total share-based compensation expense $ 1,933 $ 12,074 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 to those disclosed in the 2022 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 to 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 Russia-Ukraine conflict, the current global and domestic economic environment, including increasing interest rates and inflation or a potential recession, 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, 2023, 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. 45Q Transaction Under the agreements entered in connection with the 45Q Transaction, the Partnership’s subsidiary, CRNF, is obligated to meet certain minimum quantities of carbon oxide supply each year during the term of the agreement and is subject to fees of up to $15.0 million per year (reduced pro rata for partial years) to the unaffiliated third-party investors, subject to an overall $45.0 million cap, if these minimum quantities are not delivered. The Partnership issued a guarantee to the unaffiliated third-party investors and certain affiliates involved in the 45Q Transaction of the payment and performance obligations of CRNF and CVRP JV, which include the aforementioned fees. This guarantee has no impacts on the accounting records of the Partnership unless the parties fail to comply with the terms of the 45Q Transaction contracts. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (12) Supplemental Cash Flow Information Cash flows related to interest, leases, and capital expenditures included in accounts payable are as follows: Three Months Ended (in thousands) 2023 2022 Supplemental disclosures: Cash paid for interest $ 126 $ 1,164 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,006 898 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable 87 (2,250) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 is summarized below: Related Party Activity Three Months Ended (in thousands) 2023 2022 Sales to related parties: CRRM (1) $ — $ 48 CVRP JV (1) 1,252 — Purchases from related parties: CRRM (2) 15,588 14,534 March 31, 2023 December 31, 2022 Due to related parties (3) $ 5,235 $ 4,518 (1) Sales to related parties, included in Net sales in our condensed consolidated financial statements, consist of: (a) sales of feedstocks and services to Coffeyville Resources Refining & Marketing, LLC (“CRRM”) under the Master Service Agreement with CRNF (the “Coffeyville MSA”), and (b) CO sales to CVRP JV and its subsidiaries. (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 in our condensed consolidated financial statements, 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 tables present quarterly distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, during 2023 and 2022 (amounts presented in table below may not add to totals presented due to rounding): Quarterly Distributions Paid (in thousands) Related Period Date Paid Quarterly Distributions Public Unitholders CVR Energy Total 2022 - 4th Quarter March 13, 2023 $ 10.50 $ 70,115 $ 40,866 $ 110,981 Quarterly Distributions Paid (in thousands) Related Period Date Paid Quarterly Distributions 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 2022 - 2nd Quarter August 22, 2022 10.05 67,109 39,115 106,225 2022 - 3rd Quarter November 21, 2022 1.77 11,819 6,889 18,708 Total 2022 quarterly distributions $ 19.32 $ 129,597 $ 75,193 $ 204,790 For the first quarter of 2023, the Partnership, upon approval by the Board on May 1, 2023, declared a distribution of $10.43 per common unit, or $110.2 million, which is payable May 22, 2023 to unitholders of record as of May 15, 2023. Of this amount, CVR Energy will receive approximately $40.6 million, with the remaining amount payable to public unitholders. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements, 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”), include the accounts of CVR Partners and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Certain notes and other information have been condensed or omitted from the condensed consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the December 31, 2022 audited consolidated financial statements and notes thereto included in the 2022 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. The condensed consolidated financial statements are prepared in conformity with GAAP, which requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 2023 or any other interim or annual period. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Finished goods $ 36,635 $ 28,630 Raw materials 2,989 3,116 Parts, supplies and other 47,019 45,772 Total inventories $ 86,643 $ 77,518 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | Property, plant and equipment consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Machinery and equipment $ 1,447,751 $ 1,432,875 Buildings and improvements 17,598 17,461 Automotive equipment 16,377 16,377 Land and improvements 14,604 14,604 Construction in progress 8,541 7,858 Other 2,711 3,035 1,507,581 1,492,210 Less: Accumulated depreciation and amortization (710,953) (681,216) Total property, plant and equipment, net $ 796,627 $ 810,994 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | (in thousands) CVRP JV Balance at inception $ 46,000 Cash distributions (1) (19,000) Cash contributions 2 Balance at March 31, 2023 $ 27,002 (1) Of this amount, approximately $0.9 million related to incremental costs associated with obtaining the CO contract were capitalized and included in Prepaid expenses and other current assets and Other long-term assets in our condensed consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of right of use asset and lease liability balances for operating and finance leases | The following table summarizes the right-of-use (“ROU”) asset and lease liability balances for the Partnership’s operating leases at March 31, 2023 and December 31, 2022. There were no finance lease balances at March 31, 2023 and December 31, 2022. (in thousands) March 31, 2023 December 31, 2022 ROU asset, net Railcars $ 9,638 $ 10,449 Real estate and other 2,272 2,370 Lease liability Railcars 9,638 10,449 Real estate and other 402 456 |
Schedule of lease expense, terms, and discount rates | For the three months ended March 31, 2023 and 2022, we recognized lease expense comprised of the following components: Three Months Ended (in thousands) 2023 2022 Operating lease expense $ 1,223 $ 1,059 Finance lease expense: Amortization of ROU asset — 26 Short-term lease expense 650 766 The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and lease liabilities at March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted-average remaining lease term 4.1 years 4.3 years Weighted-average discount rate 5.9 % 5.5 % |
Schedule 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 March 31, 2023. (in thousands) Operating Leases Remainder of 2023 $ 3,402 2024 2,718 2025 2,302 2026 2,042 2027 1,756 Total lease payments 12,220 Less: imputed interest (2,180) Total lease liability $ 10,040 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of other current liabilities | Other current liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued interest $ 9,826 $ 1,404 Share-based compensation 9,788 9,231 Personnel accruals 5,105 7,539 Operating lease liabilities 2,698 2,931 Sales incentives 2,537 1,772 Accrued insurance 2,184 2,283 Accrued taxes other than income taxes 1,706 1,789 Other accrued expenses and liabilities 777 768 Total other current liabilities $ 34,621 $ 27,717 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: (in thousands) March 31, 2023 December 31, 2022 6.125% Senior Secured Notes, due June 2028 (1) $ 550,000 $ 550,000 Unamortized discount and debt issuance costs (3,076) (3,200) Total long-term debt $ 546,924 $ 546,800 (1) The estimated fair value of the 6.125% Senior Secured Notes, due June 2028 (the “2028 Notes”) was approximately $488.1 million and $493.3 million as of March 31, 2023 and December 31, 2022, respectively. These estimates of fair value are a Level 2 measurement, as defined by FASB ASC Topic 820, Fair Value Measurements , as they were determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. Credit Agreements (in thousands) Total Available Borrowing Capacity Amount Borrowed as of March 31, 2023 Outstanding Letters of Credit Available Capacity as of March 31, 2023 Maturity Date ABL Credit Facility $ 35,000 $ — $ — $ 35,000 September 30, 2024 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table presents the Partnership’s revenue, disaggregated by major products: Three Months Ended (in thousands) 2023 2022 Ammonia $ 37,499 $ 42,011 UAN 164,341 159,607 Urea products 8,170 9,223 Net sales, exclusive of freight and other 210,010 210,841 Freight revenue (1) 10,936 9,214 Other revenue (2) 5,315 2,818 Total revenue $ 226,261 $ 222,873 (1) Freight revenue recognized by the Partnership represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. (2) Includes revenue from (i) nitric acid sales and (ii) in connection with the 45Q Transaction, carbon oxide sales and noncash consideration received, which is recognized as the performance obligation associated with the CO Contract is satisfied over its term of seven years, three months. Revenue from the CO Contract is recognized over time based on carbon oxide volumes measured at delivery. |
Schedule of deferred revenue activity | A summary of the deferred revenue activity for the three months ended March 31, 2023 is presented below: (in thousands) Balance at December 31, 2022 $ 47,516 Add: New prepay contracts entered into during the period 13,069 Noncash consideration received as part of the 45Q Transaction 46,000 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period (11,851) Revenue recognized related to contracts entered into during the period (9,712) Revenue recognized related to noncash consideration (1,586) Other changes (496) Total deferred revenue 82,940 Less current portion of deferred revenue (44,871) Total long-term deferred revenue $ 38,069 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | A summary of compensation expense for the three months ended March 31, 2023 and 2022 is presented below: Three Months Ended (in thousands) 2023 2022 Phantom Unit Awards $ 908 $ 9,912 Other Awards (1) 1,025 2,162 Total share-based compensation expense $ 1,933 $ 12,074 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash flows related to interest, leases, and capital expenditures included in accounts payable | Cash flows related to interest, leases, and capital expenditures included in accounts payable are as follows: Three Months Ended (in thousands) 2023 2022 Supplemental disclosures: Cash paid for interest $ 126 $ 1,164 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,006 898 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable 87 (2,250) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 is summarized below: Related Party Activity Three Months Ended (in thousands) 2023 2022 Sales to related parties: CRRM (1) $ — $ 48 CVRP JV (1) 1,252 — Purchases from related parties: CRRM (2) 15,588 14,534 March 31, 2023 December 31, 2022 Due to related parties (3) $ 5,235 $ 4,518 (1) Sales to related parties, included in Net sales in our condensed consolidated financial statements, consist of: (a) sales of feedstocks and services to Coffeyville Resources Refining & Marketing, LLC (“CRRM”) under the Master Service Agreement with CRNF (the “Coffeyville MSA”), and (b) CO sales to CVRP JV and its subsidiaries. (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 in our condensed consolidated financial statements, 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. |
Schedule of distributions paid | The following tables present quarterly distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, during 2023 and 2022 (amounts presented in table below may not add to totals presented due to rounding): Quarterly Distributions Paid (in thousands) Related Period Date Paid Quarterly Distributions Public Unitholders CVR Energy Total 2022 - 4th Quarter March 13, 2023 $ 10.50 $ 70,115 $ 40,866 $ 110,981 Quarterly Distributions Paid (in thousands) Related Period Date Paid Quarterly Distributions 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 2022 - 2nd Quarter August 22, 2022 10.05 67,109 39,115 106,225 2022 - 3rd Quarter November 21, 2022 1.77 11,819 6,889 18,708 Total 2022 quarterly distributions $ 19.32 $ 129,597 $ 75,193 $ 204,790 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) manufacturing_facility shares | Mar. 31, 2022 USD ($) $ / shares shares | Feb. 22, 2021 USD ($) | |
Schedule of Partners' Capital [Line Items] | ||||
Number of manufacturing facilities | manufacturing_facility | 2 | |||
Percentage of limited partner interest held by the public | 63% | |||
Unit Repurchase Program, authorized amount | $ 20,000,000 | |||
Common units repurchased on open market (in units) | shares | 0 | 111,695 | ||
Cost, inclusive of transaction costs, of repurchase of outstanding common units | $ 12,400,000 | |||
Average price per common unit (in dollars per unit) | $ / shares | $ 110.98 | |||
Amount remaining in authority under Unit Repurchase Program | $ 0 | |||
CapturePoint LLC | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement and Third Party | ||||
Schedule of Partners' Capital [Line Items] | ||||
Collaborative arrangement, upfront proceeds received | $ 18,100,000 | |||
Collaborative arrangement, additional proceeds expected (up to) | $ 60,000,000 | |||
CVR Energy, Inc | IEP Energy LLC | ||||
Schedule of Partners' Capital [Line Items] | ||||
Aggregate ownership percentage | 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% | |||
Coffeyville, Kansas | ||||
Schedule of Partners' Capital [Line Items] | ||||
Number of manufacturing facilities | manufacturing_facility | 1 | |||
East Dubuque, Illinois | ||||
Schedule of Partners' Capital [Line Items] | ||||
Number of manufacturing facilities | manufacturing_facility | 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 36,635 | $ 28,630 |
Raw materials | 2,989 | 3,116 |
Parts, supplies and other | 47,019 | 45,772 |
Total inventories | $ 86,643 | $ 77,518 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 1,507,581 | $ 1,492,210 |
Less: Accumulated depreciation and amortization | (710,953) | (681,216) |
Total property, plant and equipment, net | 796,627 | 810,994 |
Machinery and equipment | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 1,447,751 | 1,432,875 |
Buildings and improvements | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 17,598 | 17,461 |
Automotive equipment | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 16,377 | 16,377 |
Land and improvements | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 14,604 | 14,604 |
Construction in progress | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | 8,541 | 7,858 |
Other | ||
Property, Plant, and Equipment | ||
Total property, plant and equipment, gross | $ 2,711 | $ 3,035 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant, and Equipment | ||
Depreciation and amortization | $ 15,211 | $ 19,465 |
Property, Plant and Equipment | ||
Property, Plant, and Equipment | ||
Depreciation and amortization | $ 15,000 | $ 19,300 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - CVRP JV - USD ($) $ in Millions | Mar. 31, 2023 | Jan. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | |
Equity method investment, fair value | $ 46 |
Equity Method Investment - Sche
Equity Method Investment - Schedule of equity method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Method Investments [Roll Forward] | |||
Cash distribution | $ (19,000) | $ 0 | |
CVRP JV | |||
Equity Method Investments [Roll Forward] | |||
Balance at beginning of period | $ 46,000 | ||
Cash distribution | (19,000) | ||
Cash contributions | 2 | ||
Balance at end of period | 27,002 | $ 27,002 | |
Transaction costs capitalized | $ 900 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 option | Feb. 21, 2022 USD ($) | Feb. 20, 2022 USD ($) | |
Leases [Abstract] | |||
Number of options to extend the lease term | option | 1 | ||
Financing lease not yet commenced, amount expected to be capitalized at commencement | $ | $ 25 | $ 20 |
Leases - Balance Sheet Summary
Leases - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Description [Abstract] | ||
Lease liability | $ 10,040 | |
Railcars | ||
Lessee, Operating Lease, Description [Abstract] | ||
ROU asset, net | 9,638 | $ 10,449 |
Lease liability | 9,638 | 10,449 |
Real estate and other | ||
Lessee, Operating Lease, Description [Abstract] | ||
ROU asset, net | 2,272 | 2,370 |
Lease liability | $ 402 | $ 456 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,223 | $ 1,059 |
Finance lease expense: | ||
Amortization of ROU asset | 0 | 26 |
Short-term lease expense | $ 650 | $ 766 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term | ||
Weighted-average remaining lease term | 4 years 1 month 6 days | 4 years 3 months 18 days |
Lease, Weighted Average Discount Rate [Abstract] | ||
Weighted-average discount rate | 5.90% | 5.50% |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases | |
Remainder of 2023 | $ 3,402 |
2024 | 2,718 |
2025 | 2,302 |
2026 | 2,042 |
2027 | 1,756 |
Total lease payments | 12,220 |
Less: imputed interest | (2,180) |
Total lease liability | $ 10,040 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued interest | $ 9,826 | $ 1,404 |
Share-based compensation | 9,788 | 9,231 |
Personnel accruals | 5,105 | 7,539 |
Operating lease liabilities | 2,698 | 2,931 |
Sales incentives | 2,537 | 1,772 |
Accrued insurance | 2,184 | 2,283 |
Accrued taxes other than income taxes | 1,706 | 1,789 |
Other accrued expenses and liabilities | 777 | 768 |
Total other current liabilities | $ 34,621 | $ 27,717 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ (3,076) | $ (3,200) |
Total long-term debt | 546,924 | 546,800 |
6.125% Senior Secured Notes, due June 2028 | Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of total long-term debt outstanding | $ 488,100 | 493,300 |
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 $ in Thousands | Mar. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Total Available Borrowing Capacity | $ 35,000 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 0 |
Available Capacity | $ 35,000 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 226,261 | $ 222,873 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, period | 7 years 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Net sales, exclusive of freight and other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 210,010 | 210,841 |
Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 37,499 | 42,011 |
UAN | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 164,341 | 159,607 |
Urea products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8,170 | 9,223 |
Freight revenue (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10,936 | 9,214 |
Other revenue (2) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,315 | $ 2,818 |
Revenue - Remaining performance
Revenue - Remaining performance obligations (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 7 years 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3 |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
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, expected timing of satisfaction, period | 1 year |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 47,516 | |
Add: | ||
New prepay contracts entered into during the period | 13,069 | |
Noncash consideration received as part of the 45Q Transaction | 46,000 | |
Less: | ||
Revenue recognized that was included in the contract liability balance at the beginning of the period | (11,851) | |
Revenue recognized related to contracts entered into during the period | (9,712) | |
Revenue recognized related to noncash consideration | (1,586) | |
Other changes | (496) | |
Ending balance | 82,940 | |
Less current portion of deferred revenue | (44,871) | $ (47,516) |
Total long-term deferred revenue | $ 38,069 | $ 0 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation | ||
Total share-based compensation expense | $ 1,933 | $ 12,074 |
Phantom Unit Awards | ||
Share-Based Compensation | ||
Total share-based compensation expense | 908 | 9,912 |
Other Awards | ||
Share-Based Compensation | ||
Total share-based compensation expense | $ 1,025 | $ 2,162 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - CapturePoint LLC - Collaborative Arrangement, Transaction with Party to Collaborative Arrangement and Third Party - CRNF $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Supply Commitment [Line Items] | |
Collaborative arrangement, fee threshold per year | $ 15 |
Fees threshold cap | $ 45 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental disclosures: | ||
Cash paid for interest | $ 126 | $ 1,164 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 1,006 | 898 |
Non-cash investing and financing activities: | ||
Change in capital expenditures included in accounts payable | $ 87 | $ (2,250) |
Related Party Transactions - Re
Related Party Transactions - Related Party Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 5,235 | $ 4,518 | |
CRRM | |||
Related Party Transaction [Line Items] | |||
Sales to related parties: | 0 | $ 48 | |
Purchases from related parties: | 15,588 | 14,534 | |
CVRP JV | |||
Related Party Transaction [Line Items] | |||
Sales to related parties: | $ 1,252 | $ 0 |
Related Party Transactions - Su
Related Party Transactions - Summary of Distributions Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Mar. 13, 2023 | Nov. 21, 2022 | Aug. 22, 2022 | May 23, 2022 | Mar. 14, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||||||
Quarterly distributions per common unit (in dollars per unit) | $ 10.50 | $ 1.77 | $ 10.05 | $ 2.26 | $ 5.24 | $ 19.32 |
Quarterly distributions Paid | $ 110,981 | $ 18,708 | $ 106,225 | $ 23,887 | $ 55,970 | $ 204,790 |
CVR Energy, Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Quarterly distributions Paid | 40,866 | 6,889 | 39,115 | 8,796 | 20,394 | 75,193 |
Public Unitholders | ||||||
Related Party Transaction [Line Items] | ||||||
Quarterly distributions Paid | $ 70,115 | $ 11,819 | $ 67,109 | $ 15,091 | $ 35,576 | $ 129,597 |
Related Party Transactions - Di
Related Party Transactions - Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | May 22, 2023 | May 01, 2023 |
Forecast | CVR Energy | ||
Related Party Transaction [Line Items] | ||
Proceeds from distribution | $ 40.6 | |
Subsequent Event | ||
Related Party Transaction [Line Items] | ||
Distributions declared per common unit (in dollars per unit) | $ 10.43 | |
Distribution declared | $ 110.2 |