CVR Partners, LP (UAN): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the nuts and bolts of how CVR Partners, LP (UAN) translates feedstock-like petroleum coke and natural gas-into the nitrogen fertilizers American farmers desperately need. Honestly, their business model is built on operational excellence, running plants like Coffeyville and East Dubuque at high utilization (hitting 95% in Q3 2025) while using their dual-feedstock advantage to keep costs competitive. It's a classic midstream-meets-ag-input play. Dive into the full Business Model Canvas below to see the key resources, customer segments, and revenue drivers that supported their recent $4.02 per unit cash distribution in the third quarter of 2025, so you can map out the near-term opportunity.

CVR Partners, LP (UAN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep CVR Partners, LP running smoothly, especially given the volatile energy and fertilizer markets we saw through the third quarter of 2025. These partnerships are crucial for feedstock supply and getting the final product, like Urea Ammonium Nitrate (UAN), to the farm gate.

CVR Energy, Inc. (General Partner and 37% common unit owner)

The foundational partnership is with CVR Energy, Inc. CVR Energy subsidiaries serve as the general partner for CVR Partners, LP. Furthermore, CVR Energy, Inc. holds a significant stake, owning exactly 37 percent of the common units representing limited partner interests in CVR Partners, LP as of late 2025. This relationship ties the partnership's fate closely to the parent company's strategic direction, including leadership transitions like the one planned for January 1, 2026.

Suppliers of feedstock: petroleum coke and natural gas

Feedstock flexibility is a key advantage, with two distinct inputs powering the two main facilities. The Coffeyville, Kansas, plant relies on petroleum coke, a byproduct from refining, while the East Dubuque, Illinois, plant uses natural gas. The company is actively planning a project at Coffeyville to use natural gas and additional hydrogen from the adjacent refinery as alternative feedstocks to third-party pet coke, which would allow feedstock choice based on prevailing prices and expand nameplate ammonia capacity by approximately 8%.

Here's the quick math on feedstock consumption and pricing for the three months ended September 30, 2025:

To be fair, natural gas prices saw an 89% increase year-over-year in Q2 2025, moving from $1.93 to $3.29 per MMBtu, though the Q3 average settled at $3.18 per MMBtu.

Agricultural retailers and cooperatives for localized distribution

CVR Partners, LP sells its nitrogen fertilizer products, including ammonia and UAN, to agricultural customers, retailers, and distributors across the United States. The company's facilities are strategically located to serve the Southern Plains and Corn Belt regions, which are major agricultural hubs. The tight supply-demand balance in U.S. agriculture supported strong pricing for UAN, which saw an average realized gate price of $317 per ton in Q3 2025, up from $254 per ton in Q3 2024.

Logistics and transportation providers (rail, truck, barge)

Moving product requires heavy reliance on third-party logistics. While CVR Partners, LP itself doesn't report specific throughput volumes for its fertilizer shipments via rail, truck, or barge, its parent, CVR Energy, Inc., gives us a look into the scale of logistics dependence in the broader network. For the twelve months ended December 31, 2024, approximately 30% of CVR Energy's product sales were moved across ONEOK and NuStar racks. This reliance on established carriers highlights the importance of these relationships for market access. The broader North American rail freight transport market was estimated to be valued at $326.09 billion in 2025.

Finance: draft Q4 2025 cash flow forecast incorporating Q3 feedstock costs by next Tuesday.

CVR Partners, LP (UAN) - Canvas Business Model: Key Activities

You're looking at the core engine of CVR Partners, LP, which is all about turning raw materials into essential nitrogen fertilizers, keeping those big plants running smoothly, and investing to make them better. The key activities here are capital-intensive and rely heavily on operational excellence.

Manufacturing Urea Ammonium Nitrate (UAN) and Ammonia

The primary activity is the continuous, large-scale production of ammonia and its derivative, Urea Ammonium Nitrate (UAN) solution fertilizer. CVR Partners, LP operates two distinct manufacturing facilities to achieve this.

The Coffeyville, Kansas, site is the larger complex, featuring a 1,300 ton-per-day ammonia unit and a massive 3,100 ton-per-day UAN unit. This location also houses a dual-train gasifier complex with a capacity of 89 million standard cubic feet per day of hydrogen, which is crucial for the ammonia process. The East Dubuque, Illinois, facility adds capacity with its 1,075 ton-per-day ammonia unit and a 950 ton-per-day UAN unit.

Here's a look at the output from the latest reported quarter, Q3 2025:

Operating Two Nitrogen Fertilizer Plants at High Utilization

Sustaining high utilization across both plants is non-negotiable for profitability, given the fixed nature of much of the operating cost structure. For the third quarter of 2025, CVR Partners, LP achieved a consolidated ammonia plant utilization rate of 95%. This rate reflects a focus on maximizing throughput, though it was impacted by planned and unplanned downtime at both facilities during the period. The management strategy emphasizes maintaining operating rates above 95% of nameplate capacity, excluding scheduled turnaround periods.

The drive for efficiency is clear when you look at the recent performance metrics:

• Q3 2025 Ammonia Utilization Rate: 95%.
• Q1 2025 Ammonia Production Rate: 101 percent.
• Q2 2025 Ammonia Utilization Rate: 91 percent.
• Medium-term utilization target: >95%.

Managing Feedstock Procurement (Petcoke and Natural Gas)

The procurement and management of primary feedstocks-specifically petcoke and natural gas-directly impacts the cost of goods sold. Direct operating expenses (DOE) for the third quarter of 2025 were reported at $58 million. This figure was up year-over-year, primarily due to higher costs for natural gas and electricity. A key strategic activity is mitigating this exposure through projects that enhance feedstock flexibility. The Coffeyville facility is undergoing work to enable the use of alternative feedstocks, specifically natural gas and hydrogen.

Executing Reliability and Debottlenecking Capital Projects

CVR Partners, LP continuously invests capital to maintain asset integrity, improve reliability, and expand capacity through debottlenecking. The 2025 capital spending plan reflects this balance between keeping the lights on and growing output. Total estimated capital expenditure for the full year 2025 is projected to be between $58 million and $65 million. Of that total, maintenance capital is expected to account for $39 million to $42 million.

These projects are often funded by cash reserves accumulated previously, which is a smart way to finance non-emergency upgrades. Key projects include:

• Ongoing reliability spending to address single point of failures.
• Executing debottlenecking initiatives to support a potential ~8% ammonia capacity expansion.
• Implementing environmental upgrades, such as adding a nitrous oxide abatement unit.
• Progress on the Coffeyville turnaround, which is a major reliability event, though it caused a slight production delay in Q3 2025.

For the first nine months of 2025 (through Q3), the company spent $13 million on capital projects, with $7 million classified as maintenance capital. This spending is directly tied to achieving the long-term goal of operating utilization rates above 95%.

CVR Partners, LP (UAN) - Canvas Business Model: Key Resources

You're looking at the core assets that let CVR Partners, LP run its business and deliver fertilizer products. These are the tangible and financial pillars supporting the whole operation. Honestly, for an infrastructure-heavy business like this, the physical assets are the main story.

The company's financial strength provides a buffer for operations and growth projects. As of the end of Q2 2025, CVR Partners, LP held total liquidity of $162 million. This figure breaks down into specific components that you need to see clearly:

The manufacturing backbone consists of two key production sites, each with distinct feedstock advantages. The Coffeyville, Kansas plant is unique because it uses a petroleum coke gasification technology to produce hydrogen, a key input for ammonia. This feedstock flexibility is a major differentiator, especially when natural gas prices spike. The East Dubuque plant, conversely, relies on natural gas feedstock.

Here's a look at the nameplate capacity for the physical assets that drive production:

• Coffeyville Ammonia Unit Capacity: 1,300 ton-per-day
• Coffeyville UAN Unit Capacity: 3,100 ton-per-day
• Coffeyville Hydrogen Production: Dual-train gasifier complex with capacity of 89 million standard cubic feet per day
• East Dubuque Ammonia Unit Capacity: 1,075 ton-per-day
• East Dubuque UAN Unit Capacity: 950 ton-per-day

Operational performance in Q2 2025 showed how these assets performed under current market conditions. The consolidated ammonia plant utilization rate was 91% for the quarter. This resulted in combined ammonia production of 197,000 gross tons, with 321,000 tons of UAN produced.

The integrated manufacturing and distribution network across the US Midwest is crucial for getting product to the Corn Belt efficiently. The strategic location of both the Coffeyville and East Dubuque facilities supports this network. For context on recent sales volumes that moved through this network in Q2 2025:

• Ammonia Sold: Approximately 57,000 tons at an average price of $593 per ton
• UAN Sold: Approximately 345,000 tons at an average price of $317 per ton

These physical assets are supported by strong recent financial results. For Q2 2025, CVR Partners, LP reported net sales of $169 million and EBITDA of $67 million. The Board declared a cash distribution of $3.89 per common unit for that quarter, showing the cash-generating capability of these resources. Finance: draft 13-week cash view by Friday.

CVR Partners, LP (UAN) - Canvas Business Model: Value Propositions

You're looking at the core value CVR Partners, LP delivers to its customers, which are primarily farmers and distributors across key US agricultural regions. The value proposition centers on reliable supply, cost-advantaged production, and product quality that directly impacts crop nutrition.

Dual-feedstock flexibility (petcoke/natural gas) for cost management

CVR Partners, LP has built-in resilience by operating facilities capable of using different primary feedstocks for hydrogen production, which is key to managing input cost volatility. The Coffeyville, Kansas, facility is equipped with a dual-train gasifier complex that has a capacity of 89 million standard cubic feet per day of hydrogen, and it is designed to use petroleum coke (petcoke). Furthermore, there are ongoing strategic projects at Coffeyville specifically to enable feedstock flexibility to use natural gas, which directly helps in cost management when one feedstock becomes significantly more expensive than the other. For instance, in the second quarter of 2025, lower petcoke feedstock costs were cited as a primary driver contributing to the increase in EBITDA relative to the second quarter of 2024. Direct operating expenses for the second quarter of 2025 were $60.5 million, though excluding inventory impacts, these expenses rose by approximately $6 million year-over-year, largely due to higher natural gas and electricity costs.

Reliable supply of essential nitrogen fertilizers (UAN and ammonia)

Reliability is demonstrated through high on-stream factors and significant production volumes of ammonia and its derivative, Urea Ammonium Nitrate (UAN). You can see the operational output across the first three quarters of 2025:

The company's ability to maintain high utilization, such as the 101% rate achieved in the first quarter of 2025, underscores its commitment to a reliable supply chain for essential nitrogen products. The Coffeyville facility alone has a nameplate capacity of a 1,300 ton-per-day ammonia unit and a 3,100 ton-per-day UAN unit.

Regional supply advantage in key US agricultural markets (e.g., Kansas, Iowa)

CVR Partners, LP is strategically positioned to serve agricultural centers, with manufacturing assets located to reduce logistics costs and ensure timely delivery during critical planting and application windows. The Coffeyville, Kansas, facility places CVR Partners directly within a major US farming region. The East Dubuque, Illinois, facility further extends this reach into the Midwest. This regional focus is critical because fertilizer is a high-volume commodity where transportation costs significantly impact the delivered price to the grower. The company collaborates with distributors, cooperatives, and retailers to ensure access to fertilizer supplies throughout planting seasons.

High-quality UAN and ammonia formulations for crop nutrition

The value proposition includes delivering products that meet the performance expectations of growers for crop nutrition, which is reflected in the realized selling prices CVR Partners, LP achieves in the market. These prices, which are a direct proxy for product value and market acceptance, show strong year-over-year appreciation in 2025:

• Q1 2025 Average Realized Gate Prices: Ammonia at $554 per ton; UAN at $256 per ton.
• Q2 2025 Average Realized Gate Prices: Ammonia at $593 per ton; UAN at $317 per ton.
• Q3 2025 Average Realized Gate Prices: Ammonia at $531 per ton; UAN at $348 per ton.

The UAN formulations serve as versatile liquid fertilizers compatible with various soil conditions, while the ammonia supports direct-application usages and agricultural blending processes. These products are essential inputs for row crops and grain fields, directly influencing production cycles for growers.

CVR Partners, LP (UAN) - Canvas Business Model: Customer Relationships

You're looking at how CVR Partners, LP keeps its product-essential nitrogen fertilizers like Urea Ammonium Nitrate (UAN) and ammonia-moving from the plant gate to the farm field. The relationships here aren't one-size-fits-all; they span from deep, committed arrangements to quick, on-the-spot sales.

Dedicated sales and distribution support for large agricultural customers

CVR Partners, LP focuses heavily on the agricultural segment, marketing UAN products directly to farmers, with primary geographic markets including Kansas, Missouri, Nebraska, Iowa, Illinois, Colorado, and Texas. The relationship with these core agricultural customers is supported by the company's production of ammonia, which is then upgraded into UAN, a product farmers use to boost crop yield and quality. The strength of these relationships is sometimes quantified by prepayments; for instance, as of the end of the third quarter of 2025, CVR Partners, LP had approximately $28 million related to customer prepayments for future product delivery, showing a level of commitment beyond a simple one-time sale.

The company's operational responsiveness also speaks to supporting these customers. For example, in Q2 2025, sales volumes were influenced by a shift in deliveries from Q2 into Q1 because favorable weather allowed farmers to plant earlier, suggesting CVR Partners, LP adjusts logistics to meet the immediate needs of the planting season.

Here's a look at some operational and pricing metrics that underpin the value proposition to these customers:

Transactional relationships with spot market buyers

To be fair, not every sale is a long-term commitment. CVR Partners, LP also markets ammonia products to industrial customers, which often involves more transactional, spot-market-based relationships. These sales are highly sensitive to the prevailing commodity prices, which saw significant movement in 2025. The realized gate prices for ammonia were up 33 percent year-over-year in Q3 2025, reaching $531 per ton, while UAN prices rose 52 percent year-over-year to $348 per ton in the same period. These figures reflect the market-driven nature of a portion of the business.

The company's strategy is clearly to maximize returns when market conditions are favorable, which means capitalizing on high spot prices when they occur. This necessitates a sales approach that can pivot quickly to meet immediate market demand, whether that is for industrial use or for agricultural buyers looking to secure supply outside of long-term contracts.

Investor relations for cash distribution transparency

For unitholders, the relationship is defined by transparency regarding cash flow and distributions, given CVR Partners, LP is a variable distribution master limited partnership. Management actively communicates how operational performance translates directly into returns. This communication is critical because distributions are not guaranteed and fluctuate based on operating performance and market prices.

The commitment to transparency was evident with the announcement following the third quarter of 2025 results:

• Board declared a Q3 2025 cash distribution of $4.02 per common unit.
• This distribution was supported by $42.4 million available cash for distribution.
• The partnership reported $156 million in cash on hand as of the end of Q3 2025.
• The Q3 2025 distribution of $4.02 per unit was an increase from the Q2 2025 distribution of $3.89 per unit.

CVR Partners, LP uses its Investor Relations function to manage expectations around this variable payout structure, which is a key component of the relationship with its financial stakeholders. Finance: draft 13-week cash view by Friday.

CVR Partners, LP (UAN) - Canvas Business Model: Channels

The channels CVR Partners, LP (UAN) uses to get its ammonia and urea ammonium nitrate (UAN) products to market are deeply tied to its manufacturing footprint in the central United States.

Direct sales force to large agricultural distributors and retailers

The primary route to market involves sales to large agricultural distributors and retailers who then service the end-user farmers. The scale of this channel is evidenced by the realized pricing and sales volumes achieved through the distribution system.

• Average realized gate price for UAN in Q3 2025 was $348 per ton.
• Average realized gate price for Ammonia in Q3 2025 was $531 per ton.
• Net sales for Q3 2025 totaled $164 million.
• For Q2 2025, approximately 345,000 tons of UAN were sold at an average price of $317 per ton.
• For Q2 2025, approximately 57,000 tons of Ammonia were sold at an average price of $593 per ton.

Rail, trucking, and barge networks for product delivery

Movement of product from the manufacturing sites relies on established logistics infrastructure. The company is headquartered in Sugar Land, Texas, with production in Coffeyville, Kansas, and East Dubuque, Illinois, necessitating significant bulk transport capability.

• The Coffeyville facility has a 3,100 ton-per-day UAN unit and a 1,300 ton-per-day ammonia unit.
• The East Dubuque facility has a 950 ton-per-day UAN unit and a 1,075 ton-per-day ammonia unit.
• CVR Partners, LP is planning an ammonia capacity expansion of approximately 8% at the Coffeyville facility.

Terminal access points for localized product pickup

While specific terminal counts aren't public, the distribution model supports localized pickup, which is essential for timely agricultural application.

Direct sales to industrial customers

A portion of the produced ammonia is directed toward industrial applications, which is a separate, though related, sales channel.

The following table summarizes the production and sales metrics that flow through these channels for the latest reported quarter, Q3 2025.

The overall financial health supporting these channels as of the end of Q3 2025 included $156 million in cash on hand and $206 million in total liquidity, including ABL availability.

CVR Partners, LP (UAN) - Canvas Business Model: Customer Segments

Agricultural growers and farmers in the US Midwest (primary market)

Agricultural distributors and retailers (cooperatives)

Industrial customers utilizing ammonia for non-agricultural applications

Here's the quick math on the product realization for the third quarter of 2025, which directly ties to these customer groups:

The demand environment supporting these segments showed specific characteristics in late 2025:

• Ammonia production utilization rate for Q3 2025 was reported at 95 percent.
• For the first half of 2025 (Six Months Ended June 30, 2025), consolidated ammonia production was 418,000 gross tons.
• The company is targeting an ammonia capacity expansion of approximately 8 percent through brownfield additions.
• USDA crop estimates projected lower than average inventory carryouts for 2026, which bolstered nitrogen demand.

For comparison, here are the sales volumes from the second quarter of 2025:

CVR Partners, LP (UAN) - Canvas Business Model: Cost Structure

The Cost Structure for CVR Partners, LP is heavily influenced by the variable costs associated with raw materials needed for nitrogen fertilizer production, alongside significant, non-negotiable capital outlays for maintaining complex chemical processing facilities.

High variable costs for feedstock (petroleum coke, natural gas) represent the largest component of the operating cost base. These costs fluctuate directly with commodity markets, making them a primary driver of margin volatility. For the three months ended September 30, 2025, the cost for natural gas used in production (excluding fuel gas) was $3.18 per MMBtu, up from $2.19 per MMBtu in the third quarter of 2024. Petroleum coke, another key input, cost $44.58 per ton in Q3 2025. CVR Partners, LP noted that direct operating expenses increased in Q3 2025 primarily due to higher natural gas and electricity costs.

The company incurs significant maintenance capital expenditures (CapEx) to ensure the safe and reliable operation of its ammonia and UAN production facilities. For the full year 2025, CVR Partners, LP estimated maintenance capital spending to be between $39 million and $42 million. Total estimated capital spending for 2025 was projected to be approximately $58 million to $65 million. This spending supports ongoing reliability and future debottlenecking projects.

Direct operating expenses (DOE) are closely monitored, though they include both fixed and variable elements like labor, utilities, and maintenance services. For the third quarter of 2025, reported direct operating expenses were $58 million. Looking ahead to the fourth quarter of 2025, excluding inventory and turnaround impacts, CVR Partners, LP expected DOE to be between $58 million and $63 million.

Distribution and logistics costs are essential for moving product from the manufacturing sites in Coffeyville, Kansas, and East Dubuque, Illinois, to customers. These costs involve arranging and paying for transportation via rail, truck, and barge, depending on the destination and product type (ammonia or UAN). While specific dollar amounts for logistics are often embedded within Cost of Goods Sold or Selling, General, and Administrative expenses, they are a necessary outlay to realize revenue from sales.

Here's a look at some key cost-related metrics from recent reporting periods for CVR Partners, LP:

The cost structure also includes specific, non-recurring expenses tied to major maintenance events. For instance, preliminary spending associated with the Coffeyville facility's planned turnaround contributed to the Q3 2025 DOE increase. The expected turnaround expense for Q4 2025 was estimated to be between $15 million and $20 million.

CVR Partners, LP is actively managing these costs through operational focus and strategic projects. The goal is to operate plants at utilization rates above 95%, excluding turnarounds, which helps spread fixed costs over a larger production base. The company is also looking at feedstock flexibility projects, like utilizing hydrogen at Coffeyville, which could impact future variable costs.

You can see how the variable feedstock costs compare to the fixed nature of maintenance CapEx:

• High variable costs are tied to market prices for natural gas and petroleum coke.
• Maintenance CapEx is planned and budgeted, showing a commitment to asset integrity.
• Turnaround expenses are lumpy but predictable within the annual maintenance cycle.
• Logistics costs are essential for market access but scale with sales volume.

Finance: draft 13-week cash view by Friday.

CVR Partners, LP (UAN) - Canvas Business Model: Revenue Streams

You're looking at how CVR Partners, LP generates its top-line income, which is heavily tied to the agricultural cycle and global supply dynamics for nitrogen products. Honestly, it boils down to two main things they make and sell.

The primary revenue driver for CVR Partners, LP is the Sale of Urea Ammonium Nitrate (UAN) solution. This is their flagship product, a liquid fertilizer that farmers use to boost crop yields. Secondarily, they pull in revenue from the Sale of ammonia, which serves both direct application needs for agriculture and various industrial uses.

The financial scale of this operation is significant. As of the end of the third quarter of 2025, the Trailing Twelve Months (LTM) revenue for CVR Partners, LP stood at $614.53 million. This shows the run-rate of the business leading up to that point.

Revenue is directly linked to the realized gate prices for these commodities, which can swing quite a bit based on global supply and demand. For instance, looking at the third quarter of 2025 performance, you can see the pricing power they commanded:

The revenue streams are best understood by looking at the Q3 2025 realized prices and volumes:

• Sale of Urea Ammonium Nitrate (UAN) solution (primary product).
• Sale of ammonia for direct application and industrial use.

Here's a quick look at the Q3 2025 pricing that drove a large chunk of that period's sales, which totaled $164 million in net sales for the quarter.

To be fair, the realized gate price for UAN in Q3 2025 was $348/ton, which is a key metric for forecasting. The revenue model is fundamentally a volume-and-price model, so when prices are up-like the 52% YoY increase seen in UAN prices for Q3 2025-the top line benefits substantially, even if volumes are slightly constrained by low inventories.

Also, consider the production side, which feeds these revenue streams. For Q3 2025, CVR Partners, LP produced 337,000 tons of UAN and 208,000 gross tons of ammonia. Not all ammonia produced is sold as ammonia; a portion is upgraded into UAN, which is why the tons sold figures differ from the gross production figures.

Finance: draft 13-week cash view by Friday.