CVR Partners, LP (NYSE:UAN) Q1 2024 Earnings Call Transcript

Mark Pytosh: Sure. That’s generally going to follow the UAN shipping number. So you’ll see UAN volume was down in the quarter, and that’s a rail — most of that freight revenue is rail. And we just didn’t ship as much UAN. So I would expect here in the second quarter if we ship what we produce, that number will grow from first to second quarter. But most of our product needs to be closed by truck and Coffeeville mostly moves by rail. The other thing about Coffeyville in the first quarter, I mentioned that the Southern Plains was stronger. And we actually saw more truck movement out of Coffeyville. I think truck movement at Coffeyville was our best quarter we’ve ever had. So that would have lowered the freight revenue as well because we move more by truck and by rail more than normal. So there’s nothing unusual on that. There’s — we just didn’t ship as much rail this quarter.

Robert McGuire: Do you think that strength in the Southern Plains continues into the second quarter?

Mark Pytosh: I think so. I try to stay away from being a professional weather forecaster. But we’ve had a — you probably saw there were a series of storms that rolled through Texas, Oklahoma, Kansas this weekend. And unfortunately, there was tornadoes and a lot of damage. But there also was a lot of rain. And while that will slow down some of the planting activity, that rain was hoped for. And so that should lead to a good follow-on top dress, side dress season in Texas and Oklahoma and Kansas. So this year, we’ve had the most moisture in that part of the country than we’ve had in 5 years. And so the activity levels have been — we’ve seen really good demand more significantly more than the last few years. And we expect that to continue with the storms that have come through here in the last week and extend to continue, I think, most of this week.

Operator: Thank you. We have reached the end of the question-and-answer session. I would now like to turn the floor back over to management for closing comments.

Mark Pytosh: Well, again, thank you for joining the first quarter call, and we look forward to reviewing our second quarter results this summer. Thank you very much.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.