UAN - CVR Partners: Q3 Distribution Disappointment Likely To See 20% Yield Ahead

Summary

• CVR Partners had maintenance operations at both of its plants. This saw utilization drop since last year didn't have any maintenance operations.
• Given the reduced volume going out of CVR Partners doors, this impacted its revenues.
• Hence, even though pricing was noticeably strong in the quarter, revenues were very much middle of the road.
• Natural gas prices looking ahead are going to be yet another impact for investors to keep in mind.
• I make the case that looking out to Q4, investors are likely to see at least $5 of cash distribution per unit. I estimate UAN's total yield can reach +20%.

For further details see: