CVR Partners Trading At Record Levels
Despite a number of red flags, including higher inflation, the war in Iran, and strong energy prices, the broader stock market, including the S&P 500, Nasdaq, and DOW are trading at record levels.
Why are investors ignoring warning signs? There’s a number of things at play. First, investors are optimistic that the war in Iran could soon be over. This should see oil prices retreat and be a boon for the global economy.
The U.S. economy has also been resilient. We’re seeing this play out in strong quarterly earnings. The vast majority of S&P 500 companies (93%) have reported their first quarter financial results with 84% reporting an earnings beat and 81% reporting stronger than expected revenue. (Source: “Earnings Insight,” Factset, May 21, 2026.)
In this environment, a rising tide lifts all boats, so when the enthusiasm wears off it’s important to have stocks in your portfolio that are doing well on every front. CVR Partners LP (NYSE:UAN) is one stock income investors should keep on your radar.
Thanks to strong financial results and investor optimism, UAN units are up:
- 26% over the last three months
- 34% over the last six months
- 25% year to date
- 70% year over year
UAN units actually hit a new record intra day high of $135.08 on March 30 and continue to trade near that level.
The company comes by those strong share price gains honestly. It continues to report robust financial results, has a reliable dividend, and strong outlook.
Chart courtesy of StockCharts.com
About CVR Partners LP
America’s only petroleum coke-based nitrogen fertilizer producer, CVR Partners LP, is a limited partnership formed by CVR Energy, Inc. (NYSE:CVI) to own, operate and grow its nitrogen fertilizer business. (Source: “Corporrate Overview,” CVR Partners LP, last accessed May 25, 2026.)
It’s nitrogen fertilizer manufacturing facilities, which are responsible for producing ammonia and urea ammonium nitrate (UAN) fertilizers, are located in Coffeyville, Kansas, and East Dubuque, Illinois.
It’s Coffeyville plant is the only such operations in North America that uses petroleum coke gasification profess to make hydrogen, a key ingredient in its manufacturing process. Its East Dubuque nitrogen fertilizer plant uses natural gas as its feedstock to produce nitrogen fertilizer.
Fertilizer makers like CVR Partners take nitrogen out of the air and combine it with hydrogen, usually from natural gas, in order to make the nitrogen compound ammonia. Ammonia is either applied directly in the soil as a nitrogen fertilizer, or used as a building block to make other nitrogen fertilizers.
On the topic of farming, the demand for corn is high in the U.S. because, in addition to corn on the cob, the crop has a large number of uses, including feed grain and fuel (ethanol).
Another Strong Quarter
In spring, nitrogen fertilizer has been in strong demand with tight global supply balances juicing pricing. This has helped CVR Partners report continued strong results. For the first quarter ended March 31, 2026, the partnership announced that net income jumped 85% on an annual basis to $50 million, or $4.72 per unit. (Source: “CVR Partners Reports First Quarter 2026 Results,” CVR Partners, LP, April 29, 2026.)
It reported first quarter earnings before interest, tax, depreciation, and amortization (EBITDA) of $78 million, a 32% over the $52.8 million reported in the first quarter of 2025. Net sales meanwhile were up 26% at $180 million.
Commenting on the strong operating results, Mark Pytosh, CEO said, “Nitrogen fertilizer market conditions have been favorable as domestic and global inventories have remained low to start the year, which has been further impacted by the recent geopolitical events in the Middle East and ongoing conflict between Russia and Ukraine.
Pytosh added that the spring planting season has gone well so far this year. While planted corn acres are expected to be down approximately four percent from the record levels of 2025, management continues to see strong demand for nitrogen fertilizers,”
Announces Quarterly Payout of $4.00/Unit
CVR Partner’s stated goal is to distribute all of the available cash it generates each quarter. That means its payout will vary due to factors such as operating performance, fluctuations in the prices of finished products, and maintenance expenditures.
Right now, things are going well for CVR Partners. For the first quarter, it declared a payout of $4.00 per unit, a 77% increase over the $1.75 paid out in the first quarter of 2025.
This works out to an annual distribution of $12.28 per unit, for a forward distribution of approximately 10%. (Source: “Dividend History,” CVR Partners LP, last accessed May 26, 2026.)
The Lowdown on CVR Partners LP
CVR Partners continues to be a great Basic Materials stock reporting strong financial results. And in this frothy market, strong financial results are essential. Going forward, management has noted that the domestic and international nitrogen fertilizer market remains solid with strong demand and low inventory.
This positive outlook could help energize its units and distribution payouts over the near and long term.