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Who We Are

 

CVR Partners is a growth-oriented limited partnership formed by CVR Energy, Inc. to own, operate and grow our nitrogen fertilizer business. Our nitrogen fertilizer manufacturing facilities, which primarily produce ammonia and urea ammonium nitrate (UAN) fertilizers, are located in Coffeyville, Kansas, and East Dubuque, Illinois.

Coffeyville Resources Nitrogen Fertilizers, LLC, is a subsidiary of CVR Partners and directly owns and operates the Coffeyville nitrogen fertilizer plant. The Coffeyville plant is the only such operation in North America that uses a petroleum coke gasification process to make hydrogen, a key ingredient in its manufacturing process. East Dubuque Nitrogen Fertilizers, LLC, also a subsidiary of CVR Partners, directly owns the East Dubuque nitrogen fertilizer plant, which uses natural gas as its feedstock to produce nitrogen fertilizer. CVR Partnersí fertilizer facilities produced a combined 199,500 tons of ammonia during the fourth quarter of 2017, of which 64,100 net tons were available for sale while the rest was upgraded to other fertilizer products, including 306,100 tons of UAN.

CVR Partners, LP is traded on the New York Stock Exchange under the ticker symbol "UAN". CVR Energy subsidiaries serve as the general partner and own 34 percent of the common units of CVR Partners.

Strategic Locations

 

We have a regional advantage with our strategically located facilities. Our nitrogen fertilizer facilities, located in Coffeyville, Kansas, and East Dubuque, Illinois, provide geographical advantages in that we are located in the U.S. Farm Belt and Mid Corn Belt regions. As a result of our close proximity to these agricultural markets, we are able to cost-effectively sell substantially all of our products at a high margin, whereas a significant portion of our competitorsí revenues are derived from the lower-margin industrial market. In addition, our on-site storage facilities allow for better timing of product pickup and application by customers across both regions.

Our Coffeyville fertilizer plantís close location to the Union Pacific main line increases our transportation cost-advantage by lowering the costs of bringing our products to customers. Our products leave the plant either in trucks for direct shipment to customers, incurring no transportation costs, or in railcars for destinations located principally on the Union Pacific Railroad. We do not incur any intermediate transfer, storage, barge freight or pipeline freight charges.

Our East Dubuque fertilizer plant primarily sells its product within 200 miles of the facility as Illinois and Iowa are the two largest corn producing and nitrogen fertilizing consuming states. The plant also benefits from its location on the Mississippi River and its direct access to a barge dock as well as the nearby rail spur serviced by the Canadian National Railway Company. In most cases, customers purchase nitrogen products form the facility and then arrange and pay to transport the products to their final destination by truck. As a result, the plant generally does not incur shopping costs.

Pure-Play Fertilizer Company

 

Our company benefits from positive trends in the nitrogen fertilizer market. We believe that as a pure-pay nitrogen fertilizer company we are well positioned to benefit from positive trends in the nitrogen fertilizer market in general and the UAN market in particular, including strengthening demand, tightening supply, rising crop prices and increased corn acreage.

We derive substantially all of our revenue from the production and sale of nitrogen fertilizers, primarily in the agricultural market, whereas most of our competitors are diversified into other crop nutrients, such as phosphate and potassium, and make significant sales into the lower-margin industrial market. Nitrogen fertilizer production is a higher margin, growing business with more stable demand compared to the production of phosphate and potassium because nitrogen is depleted in the soil more quickly and therefore must be reapplied annually.

Our Facilities

 

Coffeyville Resources Nitrogen Fertilizers, LLC, located in Coffeyville, Kansas, is the only fertilizer facility in North America that utilizes a petroleum coke, or pet coke, gasification process to produce nitrogen fertilizer. The plant, which sits on 35 acres, includes a 1,300 ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate (UAN) unit and a gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. Our gasifier is a dual-train facility, with each falsifier able to function independently of the other, thereby providing redundancy and improving reliability.

The Coffeyville plant enjoys the benefit of a stable and secure raw material supply. The primary raw material feedstock used in the plantís nitrogen fertilizerís production process is pet coke, which is produced during the crude oil refining process. We currently purchase most of our pet coke from CVR Refining, which owns the Coffeyville refinery adjacent to the fertilizer plant.

East Dubuque Nitrogen Fertilizers, LLC, located in East Dubuque, Illinois, uses low-cost, North American natural gas to produce nitrogen fertilizer. The plant primarily includes a 1,075 ton-per-day ammonia unit and a 1,100 ton-per-day UAN unit. The facility is located on a 210-acre, 140-foot bluff above the Mississippi River with access to the river for loading certain products.

The East Dubuque plant has the flexibility to significantly vary its product mix. This enables us to upgrade our ammonia production into varying amounts of UAN, nitric acid and liquids and granulated urea each season, depending on market demand, pricing and storage availability.

 
 
 
 
 
 
 
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