CVR Partners, LP reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $142.9 million, up from $127.7 million in the same period of 2024. The partnership's operating income also saw a notable rise, climbing to $34.6 million compared to $20.1 million a year earlier. Net income for the quarter was $27.1 million, more than double the $12.6 million reported in the prior year. This growth was primarily driven by increased sales volumes of urea ammonium nitrate (UAN) and higher ammonia pricing, alongside favorable inventory impacts.
In terms of operational metrics, CVR Partners achieved an ammonia production utilization rate of 101% for the quarter, a significant improvement from 90% in the first quarter of 2024. This increase was attributed to a planned outage at the Coffeyville Facility in the previous year, which had affected production levels. The partnership's total capital expenditures for the quarter amounted to $5.9 million, with maintenance capital spending accounting for $3.7 million and growth capital spending at $2.2 million.
The partnership's strategic focus remains on enhancing its nitrogen fertilizer business, with ongoing projects aimed at improving operational reliability and production capacity. Notably, CVR Partners is exploring the potential to utilize natural gas as an alternative feedstock at its Coffeyville Facility, which could enhance production flexibility. Additionally, the partnership plans to execute various reliability improvement projects throughout 2025, including expansions of diesel exhaust fluid production capabilities.
As of March 31, 2025, CVR Partners reported cash and cash equivalents of $121.8 million, a significant increase from $90.9 million at the end of 2024. The partnership also has $50 million available under its ABL Credit Facility, bringing total liquidity to $171.8 million. Looking ahead, the partnership anticipates continued volatility in the nitrogen fertilizer market due to geopolitical factors and feedstock price fluctuations, but remains optimistic about long-term demand driven by increasing global population and agricultural needs. The board has declared a distribution of $2.26 per common unit for the first quarter, payable in May 2025, reflecting the partnership's commitment to returning value to its unitholders.