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. In 2021, CVR Partnersí fertilizer facilities produced a
combined 807,000 tons of ammonia, of which 275,000 tons were available for sale, while the rest was upgraded to other
fertilizer products, including 1,208,000 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 37 percent of the common units of CVR Partners.
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 shipping 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.
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.
CVR Partners, LP | 2277 Plaza Drive, Suite 500 | Sugar Land, Texas 77479 |