Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35120 | ||
Entity Registrant Name | CVR Partners, LP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-2677689 | ||
Entity Address, Address Line One | 2277 Plaza Drive, Suite 500 | ||
Entity Address, City or Town | Sugar Land | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77479 | ||
City Area Code | 281 | ||
Local Phone Number | 207-3200 | ||
Title of 12(b) Security | Common units representing limited partner interests | ||
Trading Symbol | UAN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 303.5 | ||
Entity Common Stock, Shares Outstanding | 113,282,973 | ||
Entity Central Index Key | 0001425292 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 36,994 | $ 61,776 |
Accounts receivable | 34,264 | 61,662 |
Inventories | 53,930 | 63,554 |
Prepaid expenses and other current assets | 5,406 | 6,989 |
Total current assets | 130,594 | 193,981 |
Property, plant, and equipment, net | 951,959 | 1,015,240 |
Goodwill | 40,969 | 40,969 |
Other long-term assets | 14,433 | 4,198 |
Total assets | 1,137,955 | 1,254,388 |
Current liabilities: | ||
Accounts payable | 21,069 | 26,789 |
Accounts payable to Affiliates | 2,578 | 2,976 |
Other current liabilities | 24,043 | 24,066 |
Deferred revenue | 27,841 | 68,804 |
Total current liabilities | 75,531 | 122,635 |
Long-term liabilities: | ||
Long-term debt, net of current portion | 632,406 | 628,989 |
Other long-term liabilities | 10,474 | 2,938 |
Total long-term liabilities | 642,880 | 631,927 |
Commitments and contingencies (See Note 8) | ||
Partners’ capital: | ||
Common unitholders, 113,282,973 units issued and outstanding as of December 31, 2019 and 2018, respectively | 419,543 | 499,825 |
General partner interest | 1 | 1 |
Total partners' capital | 419,544 | 499,826 |
Total liabilities and partners’ capital | $ 1,137,955 | $ 1,254,388 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 404,177 | $ 351,082 | $ 330,802 |
Operating costs and expenses: | |||
Cost of materials and other | 94,103 | 88,461 | 84,874 |
Direct operating expenses (exclusive of depreciation and amortization) | 173,629 | 159,319 | 156,357 |
Depreciation and amortization | 79,839 | 71,575 | 73,986 |
Cost of sales | 347,571 | 319,355 | 315,217 |
Selling, general and administrative expenses | 25,829 | 25,023 | 25,630 |
Loss on asset disposals | 3,397 | 390 | 233 |
Operating income (loss) | 27,380 | 6,314 | (10,278) |
Other income (expense): | |||
Interest expense, net | (62,636) | (62,588) | (62,845) |
Other income, net | 269 | 6,201 | 555 |
Loss before income taxes | (34,987) | (50,073) | (72,568) |
Income tax (benefit) expense | (18) | (46) | 220 |
Net loss | $ (34,969) | $ (50,027) | $ (72,788) |
Net loss per common unit - basic and diluted (in dollars per unit) | $ (0.31) | $ (0.44) | $ (0.64) |
Distributions declared per common unit (in dollars per unit) | $ 0.40 | $ 0 | $ 0.02 |
Weighted-average common units outstanding: | |||
Basic and diluted (in units) | 113,283 | 113,283 | 113,283 |
CONSOLIDATED STATEMENTS OF PART
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | Common Units | General Partner Interest |
Balance (in units) at Dec. 31, 2016 | 113,282,973 | ||
Balance at Dec. 31, 2016 | $ 624,907 | $ 624,906 | $ 1 |
Increase (Decrease) in Shareholders' Equity | |||
Cash distributions to common unitholders – Affiliates | (778) | (778) | |
Cash distributions to common unitholders – Non-affiliates | (1,488) | (1,488) | |
Net loss | (72,788) | $ (72,788) | |
Balance (in units) at Dec. 31, 2017 | 113,282,973 | ||
Balance at Dec. 31, 2017 | 549,853 | $ 549,852 | 1 |
Increase (Decrease) in Shareholders' Equity | |||
Net loss | (50,027) | $ (50,027) | |
Balance (in units) at Dec. 31, 2018 | 113,282,973 | ||
Balance at Dec. 31, 2018 | 499,826 | $ 499,825 | 1 |
Increase (Decrease) in Shareholders' Equity | |||
Cash distributions to common unitholders – Affiliates | (15,568) | (15,568) | |
Cash distributions to common unitholders – Non-affiliates | (29,745) | (29,745) | |
Net loss | (34,969) | $ (34,969) | |
Balance (in units) at Dec. 31, 2019 | 113,282,973 | ||
Balance at Dec. 31, 2019 | $ 419,544 | $ 419,543 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (34,969) | $ (50,027) | $ (72,788) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 79,839 | 71,575 | 73,986 |
Amortization of deferred financing costs and original issue discount | 3,666 | 3,333 | 3,046 |
Loss on asset disposals | 3,397 | 390 | 70 |
Share-based compensation | 3,445 | 3,017 | 3,021 |
Other adjustments | (5) | 1,690 | 2,425 |
Changes in assets and liabilities: | |||
Accounts receivable | 936 | (6,698) | 4,087 |
Inventories | 9,914 | (8,670) | 59 |
Prepaid expenses and other current assets | 1,582 | (1,196) | 1,052 |
Accounts payable | (8,077) | 5,215 | (2,315) |
Deferred revenue | (14,575) | 10,828 | 904 |
Accrued expenses and other current liabilities | (6,542) | 1,367 | (4,969) |
Other long-term assets and liabilities | 546 | 1,410 | 1,822 |
Net cash provided by operating activities | 39,157 | 32,234 | 10,400 |
Cash flows from investing activities: | |||
Capital expenditures | (18,656) | (19,806) | (14,556) |
Proceeds from the sale of assets | 127 | 175 | 0 |
Net cash used in investing activities | (18,529) | (19,631) | (14,556) |
Cash flows from financing activities: | |||
Cash distributions to common unitholders – Affiliates | (15,568) | 0 | (778) |
Cash distribution to common unitholders – Non-affiliates | (29,745) | 0 | (1,488) |
Other financing activities | (97) | 0 | 0 |
Net cash used in financing activities | (45,410) | 0 | (2,266) |
Net (decrease) increase in cash and cash equivalents | (24,782) | 12,603 | (6,422) |
Cash and cash equivalents, beginning of period | 61,776 | 49,173 | 55,595 |
Cash and cash equivalents, end of period | $ 36,994 | $ 61,776 | $ 49,173 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common units issued (in units) | 113,282,973 | 113,282,973 |
Common units outstanding (in units) | 113,282,973 | 113,282,973 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business CVR Partners, LP (referred to as “CVR Partners” or the “Partnership”) is a Delaware limited partnership formed by CVR Energy, Inc. (together with its subsidiaries, but excluding the Partnership and its subsidiaries, “CVR Energy”) to own, operate, and grow its nitrogen fertilizer business. The Partnership produces nitrogen fertilizer products at two manufacturing facilities, which are located in Coffeyville, Kansas (the “Coffeyville Facility”) and East Dubuque, Illinois (the “East Dubuque Facility”). As used in these financial statements, references to CVR Partners, the Partnership, “we”, “us”, and “our” may refer to consolidated subsidiaries of CVR Partners or one or both of the facilities, as the context may require. Both facilities manufacture ammonia and are able to further upgrade to other nitrogen fertilizer products, principally urea ammonium nitrate (“UAN”). Nitrogen fertilizer is used by farmers to improve the yield and quality of their crops, primarily corn and wheat. The Partnership’s product sales are sold on a wholesale basis in the United States of America. As of December 31, 2019 and 2018, public security holders held approximately 66% of the Partnership’s outstanding limited partner interests and Coffeyville Resources, LLC (“CRLLC”), a wholly-owned subsidiary of CVR Energy, held approximately 34% of the Partnership’s outstanding limited partner interests and 100% of the general partner interest held by CVR GP, LLC (“CVR GP” or the “general partner”). As of both December 31, 2019 and 2018, Icahn Enterprises L.P. (“IEP”) and its affiliates owned approximately 71% of the shares of CVR Energy. Management and Operations The Partnership, including CVR GP, also is party to a number of agreements with CVR Energy and its subsidiaries, including CVR GP, to manage certain business relations between the Partnership and the other parties thereto. The various rights and responsibilities of the Partnership’s partners are set forth in the Partnership’s limited partnership agreement and, as applicable, those agreements with CVR Energy. CVR GP manages and operates the Partnership via a combination of the general partner’s senior management team and CVR Energy’s senior management team pursuant to a services agreement among CVR Energy, CVR GP, and the Partnership. See Note 9 (“Related Party Transactions”) for further discussion. Common unitholders have limited voting rights on matters affecting the Partnership and have no right to elect the general partner’s directors on an annual or continuing basis. Subsequent Events The Partnership evaluated subsequent events, if any, that would require an adjustment to the Partnership’s consolidated financial statements or require disclosure in the notes to the consolidated financial statements through the date of issuance of the consolidated financial statements. Where applicable, the notes to these consolidated financial statements have been updated to discuss all significant subsequent events which have occurred. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation The accompanying Partnership consolidated financial statements, prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), include the accounts of CVR Partners and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Reclassifications Certain reclassifications have been made within the consolidated financial statements for the years ended December 31, 2018 and 2017 to conform with current presentation. Use of Estimates We prepare our consolidated financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We review our estimates on an ongoing basis, based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit, investments in highly liquid money market accounts, and debt instruments with original maturities of three months or less. Accounts Receivable Our receivables primarily consist of customer accounts receivable recorded at the invoiced amounts and generally do not bear interest. Also included within Accounts Receivable are unbilled fixed price contracts which is further discussed within Note 6 (“Revenue”). Allowances for doubtful accounts are generally recorded when it becomes probable the receivable will not be collected and is booked to bad debt expense. The largest concentration of credit for any one customer was approximately 18% and 25%, respectively, of the accounts receivable balance at December 31, 2019 and 2018. Inventories Inventories consist of fertilizer products which are valued at the lower of first-in, first-out (“FIFO”) cost, or net realizable value. Inventories also include raw materials (primarily gauze, natural gas, and pet coke) and parts and supplies that are valued at the lower of moving-average cost, which approximates FIFO, or net realizable value. The cost of inventories includes inbound freight costs. Inventories consisted of the following: December 31, (in thousands) 2019 2018 Finished goods $ 17,612 $ 25,136 Raw materials 243 439 Parts, supplies and other 36,075 37,979 Total Inventories $ 53,930 $ 63,554 At December 31, 2019 and 2018, inventories included depreciation of approximately $4.5 million and $5.7 million, respectively. Property, Plant and Equipment Additions to property, plant and equipment, including capitalized interest and certain costs allocable to construction and property purchases, are recorded at cost. Expenditures for improvements that increase economic benefit or returns and/or extend useful life are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The lives used in computing depreciation for significant asset classes are as follows: Asset Range of Useful Lives, in Years Land and improvements 15 to 30 Buildings and improvements 20 to 30 Automotive equipment 5 to 15 Machinery and equipment 5 to 30 Other 5 to 30 Property, plant and equipment consisted of the following: December 31, (in thousands) 2019 2018 Machinery and equipment $ 1,378,651 $ 1,362,965 Buildings and improvements 17,221 17,116 Automotive equipment 16,691 16,773 Land and improvements 14,075 13,250 Construction in progress 5,198 15,126 Other 1,752 2,753 1,433,588 1,427,983 Less: Accumulated depreciation 481,629 412,743 Total Property, plant and equipment, net $ 951,959 $ 1,015,240 Leasehold improvements and assets held under finance leases are depreciated or amortized on the straight-line method over the shorter of the contractual lease term or the estimated useful life of the asset. Expenditures for routine maintenance and repair costs are expensed when incurred. Such expenses are reported in Direct operating expenses (exclusive of depreciation and amortization) in the Partnership’s Consolidated Statements of Operations. Leases At inception, the Partnership determines whether an arrangement is a lease and the appropriate lease classification. Operating leases are included as operating lease right-of-use (“ROU”) assets within Other long-term assets and lease liabilities within Other current liabilities and Other long-term liabilities on our Consolidated Balance Sheets. Finance leases are included as ROU finance leases within Property, plant, and equipment, net, and finance lease liabilities within Other current liabilities and Long-term debt, net of current portion on our Consolidated Balance Sheets. Leases with an initial expected term of 12 months or less are considered short-term and are not recorded on our Consolidated Balance Sheets. The Partnership recognizes lease expense for these leases on a straight-line basis over the expected lease term. ROU assets represent the Partnership’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of minimum lease payments over the lease term. The lease term is modified to reflect options to extend or terminate the lease when it is reasonably certain we will exercise such option. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise, in which case the depreciation policy in the “Property, Plant and Equipment” section above is applicable. The periodic lease payments are treated as payments of the lease obligation and interest is recorded as interest expense. See “Recent Accounting Pronouncements - Adoption of Lease Standard” within this Note for a further discussion on the impacts of adopting the lease standard. Impairment of Long-Lived Assets The Partnership reviews long-lived assets (excluding goodwill, intangible assets with indefinite lives, and deferred tax assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future net cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of their carrying value or fair value less cost to sell. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired less liabilities assumed. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. The Partnership uses November 1 of each year as its annual valuation date for its goodwill impairment test. The Partnership performed its annual impairment review of goodwill for 2019, 2018, and 2017 and concluded there were no impairments. For the period ended December 31, 2019, the Partnership determined there were no events or circumstances which would trigger the performance of a quantitative analysis after reviewing all qualitative factors impacting the reporting unit including improved market conditions, financial results, and financial forecasts from those used in the fair value analysis at December 31, 2018. For the periods ended December 31, 2018 and 2017, the fair value of the Coffeyville reporting unit exceeded its carrying value by approximately 36% and 12%, respectively, based upon the results of the Partnership’s goodwill impairment test. Deferred Financing Costs Lender and other third-party costs associated with debt issuances are deferred and amortized to interest expense and other financing costs using the effective-interest method over the life of the debt. Deferred financing costs related to line-of-credit arrangements are amortized using the straight-line method through the termination date of the facility. The deferred financing costs are included, net, within long-term debt and in other long-term assets for the line-of-credit arrangements where no debt balance exists. Loss Contingencies In the ordinary course of business, CVR Partners may become party to lawsuits, administrative proceedings, and governmental investigations, including environmental, regulatory, and other matters. The outcome of these matters cannot always be predicted accurately, but the Partnership accrues liabilities for these matters if the Partnership has determined that it is probable a loss has been incurred and the loss can be reasonably estimated. Environmental, Health & Safety (“EHS”) Matters The Partnership is subject to various stringent federal, state, and local environmental, health, and safety rules and regulations. Liabilities related to future remediation costs of past environmental contamination of properties are recognized when the related costs are considered probable and can be reasonably estimated. Estimates of these costs are based upon currently available facts, internal and third-party assessments of contamination, available remediation technology, site-specific costs, and currently enacted laws and regulations. In reporting environmental liabilities, no offset is made for potential recoveries. Loss contingency accruals, including those for environmental remediation, are subject to revision as further information develops or circumstances change and such accruals can take into account the legal liability of other parties. Management periodically reviews and, as appropriate, revises its environmental accruals. Environmental expenditures for capital assets are capitalized at the time of the expenditure when such costs provide future economic benefits. As of December 31, 2019 and 2018, no liabilities have been recognized for environmental remediation matters as no matters have been identified that are considered to be probable or estimable. Revenue Recognition We recognize revenue based on consideration specified in contracts or agreements with customers when we satisfy our performance obligations by transferring control over products or services to a customer. The adoption of ASC 606 resulted in the recognition of deferred revenue and related receivables, on a gross basis, associated with contracts that guarantee a price and supply of nitrogen fertilizer products in quantities expected to be delivered in the normal course of business. Other accounting policies relevant to revenue include: • Excise and other taxes collected from customers and remitted to governmental authorities are excluded from reported revenues; • Revenue transactions that pass control at customers’ designated facilities; • Non-monetary product exchanges which are entered into in the normal course of business are included on a net cost basis in operating expenses on the Consolidated Statements of Operations; and • Pass-through finished goods delivery costs reimbursed by customers are reported in net sales, while an offsetting expense is included in cost of materials and other. Other considerations - Excise and other taxes collected from customers and remitted to governmental authorities are excluded from reported revenues. Cost Classifications Cost of materials and other consist primarily of freight and distribution expenses, feedstock expenses, purchased ammonia, and purchased hydrogen. Direct operating expenses (exclusive of depreciation and amortization) consist primarily of energy and other utility costs, direct costs of labor, property taxes, plant-related maintenance services, including turnaround, and environmental and safety compliance costs, as well as catalyst and chemical costs. Each of these financial statement line items are also impacted by changes in inventory balances. Direct operating expenses also include allocated share-based compensation from CVR Energy and its subsidiaries, as discussed in Note 7 (“Share-Based Compensation”). Selling, general and administrative expenses consist primarily of legal expenses, treasury, accounting, marketing, human resources, information technology, and maintaining the corporate and administrative offices in Texas and Kansas. Turnaround Expenses The direct-expense method of accounting is used for turnaround activities. Turnarounds represent major maintenance activities that require for the shutdown of significant parts of a plant to perform necessary inspection, cleaning, repairs, and replacements of assets. Planned turnaround activities for the nitrogen facilities generally occur every two Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC Topic 718, Compensation — Stock Compensation (“ASC 718”). Currently, all of the Company’s share-based compensation awards are liability-classified and are measured at fair value at the end of each reporting period based on the applicable closing unit price. Compensation expense will fluctuate based on changes in the applicable unit price value and expense reversals resulting from employee terminations prior to award vesting. See Note 7 (“Share-Based Compensation”) for further discussion. Income Taxes CVR Partners accounts for income taxes utilizing the asset and liability approach. Under this method, deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred amounts are measured using enacted tax rates expected to apply to taxable income in the year those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Allocation of Costs CVR Energy and its subsidiaries provide a variety of services to the Partnership, including employee benefits provided through CVR Energy’s benefit plans, administrative services provided by CVR Energy’s employees and management, insurance, and office space leased by CVR Energy. As such, the accompanying consolidated financial statements include costs that have been incurred by CVR Energy on behalf of the Partnership. These amounts incurred by CVR Energy are then billed or allocated to the Partnership and are classified on the Consolidated Statements of Operations as either Direct operating expenses (exclusive of depreciation and amortization) or as Selling, general and administrative expenses. See Note 9 (“Related Party Transactions”) for a detailed discussion of the billing procedures and the basis for calculating the charges for specific products and services. Recent Accounting Pronouncements - Adoption of Lease Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), creating a new topic, FASB ASC Topic 842, “Leases” (“Topic 842”), which supersedes lease requirements in FASB ASC Topic 840, “Leases.” The new standard revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability related to future lease payments and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term on the balance sheet. We adopted Topic 842 as of January 1, 2019, electing the option to apply the transition provisions at the adoption date instead of the earliest comparative period presented in the financial statements. In connection with the adoption of Topic 842, we made the following elections: • Only ROU assets and the related lease liabilities for leases with an initial term greater than one year were and will be recognized; • The accounting treatment for existing land easements was carried forward; • Lease and non-lease components were not, and will not, be bifurcated for all of the Partnership’s asset groups; and • The portfolio approach was, and will continue to be, used in the selection of the discount rate used to calculate minimum lease payments and the related ROU asset and operating lease liability amounts. The adoption of Topic 842 on January 1, 2019 incrementally impacted the Partnership’s condensed consolidated balance sheet as of that date. The following table presents the financial statement line items impacted by the Partnership’s adoption of Topic 842. (in thousands) December 31, 2018 As Stated Effect of Adoption of January 1, 2019 As Adjusted Current assets: Prepaid expenses and other current assets $ 6,989 $ (2,650) (1) $ 4,339 Total currents assets 193,981 (2,650) 191,331 Other long-term assets 4,198 16,923 (2) 21,121 Total assets $ 1,254,388 $ 14,273 $ 1,268,661 Current liabilities: Other current liabilities $ 24,066 $ 3,462 (3) $ 27,528 Total current liabilities 122,635 3,462 126,097 Long-term liabilities: Other long-term liabilities 2,938 10,811 (3) 13,749 Total long-term liabilities 631,927 10,811 642,738 Equity: Total liabilities and partners’ capital $ 1,254,388 $ 14,273 $ 1,268,661 (1) Represents lease prepayments reclassified to ROU assets. (2) Represents recognition of initial ROU assets for operating leases, including the reclassification of certain lease prepayments. (3) Represents the initial recognition of lease liabilities. Recent Accounting Pronouncements - Adoption of Internal-Use Software Standard In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40). This ASU better aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that’s also a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Effective January 1, 2019, we adopted this ASU and chose to apply the prospective approach for all implementation costs incurred after the date of adoption. We evaluated the effects of adopting this new accounting guidance and concluded it did not have a material impact on the Partnership’s consolidated financial position or results of operations. Recent Accounting Pronouncements - New Accounting Standards Issued But Not Yet Implemented In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU replaces the incurred loss model with a current expected credit loss model for more timely recognition of expected impairment losses for most financial assets and certain other instruments that are not measured at fair value through net income. Effective January 1, 2020, we adopted this ASU and evaluated the effects of adopting this new accounting guidance. The adoption will not have a material impact on the Partnership’s consolidated financial position or results of operations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | (3) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Effect of Initial Adoption of New Lease Standard - January 1, 2019 ROU Assets . Upon initial recognition, our ROU assets for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Railcar leases $ 14,255 Real Estate and other leases (1) 243 Total ROU assets $ 14,498 (1) Includes $0.2 million of finance leases for operating equipment as of January 1, 2019. Lease Liabilities . Upon initial recognition, our lease liabilities for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Current liabilities: Operating leases $ 3,462 Finance leases 225 Long-term liabilities: Operating leases 10,811 Total lease liabilities $ 14,498 Balance Sheet Summary at December 31, 2019 The following tables summarize the ROU asset and lease liability balances for the Partnership’s operating and finance leases at December 31, 2019: (in thousands) December 31, 2019 Operating Leases: ROU asset, net Railcars $ 10,826 Real estate and other 2,581 Lease liability Railcars $ 11,088 Real estate and other 228 Finance Leases: ROU asset, net Real estate and other $ 201 Lease liability Real estate and other $ 205 Lease Expense Summary for the year ended December 31, 2019 We recognize lease expense on a straight-line basis over the lease term. For the year ended December 31, 2019, we recognized lease expense comprised of the following components: (in thousands) December 31, 2019 Operating lease expense $ 3,122 Finance lease expense: Amortization of ROU asset $ 322 Interest expense on lease liability 10 Short-term lease expense, recognized within Direct operating expenses (exclusive of depreciation and amortization), was $0.4 million for the year ended December 31, 2019. Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities: December 31, 2019 January 1, 2019 (initial recognition) Weighted-average remaining lease term (years) Operating Leases 3.4 4.3 Finance Leases 2.3 0.5 Weighted-average discount rate Operating Leases 5.1 % 5.1 % Finance Leases 3.9 % 8.0 % Maturities of Lease Liabilities The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at December 31, 2019: (in thousands) Operating Leases Financing Leases 2020 $ 4,019 $ 107 2021 3,467 107 2022 3,026 — 2023 1,163 — 2024 486 — Thereafter 162 — Total lease payments 12,323 214 Less: imputed interest (1,007) (9) Total lease liability $ 11,316 $ 205 |
Leases | (3) Leases Lease Overview We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Effect of Initial Adoption of New Lease Standard - January 1, 2019 ROU Assets . Upon initial recognition, our ROU assets for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Railcar leases $ 14,255 Real Estate and other leases (1) 243 Total ROU assets $ 14,498 (1) Includes $0.2 million of finance leases for operating equipment as of January 1, 2019. Lease Liabilities . Upon initial recognition, our lease liabilities for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Current liabilities: Operating leases $ 3,462 Finance leases 225 Long-term liabilities: Operating leases 10,811 Total lease liabilities $ 14,498 Balance Sheet Summary at December 31, 2019 The following tables summarize the ROU asset and lease liability balances for the Partnership’s operating and finance leases at December 31, 2019: (in thousands) December 31, 2019 Operating Leases: ROU asset, net Railcars $ 10,826 Real estate and other 2,581 Lease liability Railcars $ 11,088 Real estate and other 228 Finance Leases: ROU asset, net Real estate and other $ 201 Lease liability Real estate and other $ 205 Lease Expense Summary for the year ended December 31, 2019 We recognize lease expense on a straight-line basis over the lease term. For the year ended December 31, 2019, we recognized lease expense comprised of the following components: (in thousands) December 31, 2019 Operating lease expense $ 3,122 Finance lease expense: Amortization of ROU asset $ 322 Interest expense on lease liability 10 Short-term lease expense, recognized within Direct operating expenses (exclusive of depreciation and amortization), was $0.4 million for the year ended December 31, 2019. Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities: December 31, 2019 January 1, 2019 (initial recognition) Weighted-average remaining lease term (years) Operating Leases 3.4 4.3 Finance Leases 2.3 0.5 Weighted-average discount rate Operating Leases 5.1 % 5.1 % Finance Leases 3.9 % 8.0 % Maturities of Lease Liabilities The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at December 31, 2019: (in thousands) Operating Leases Financing Leases 2020 $ 4,019 $ 107 2021 3,467 107 2022 3,026 — 2023 1,163 — 2024 486 — Thereafter 162 — Total lease payments 12,323 214 Less: imputed interest (1,007) (9) Total lease liability $ 11,316 $ 205 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | (4) Other Current Liabilities Other current liabilities were as follows: December 31, (in thousands) 2019 2018 Personnel accruals $ 8,187 $ 7,993 Share-based compensation 5,011 2,667 Operating lease liabilities (1) 3,523 — Accrued interest 2,518 2,516 Sales incentives 1,614 1,727 Prepaid revenue contracts 277 5,863 Other accrued expenses and liabilities 2,913 3,300 Total other current liabilities $ 24,043 $ 24,066 (1) The lease standard was adopted on January 1, 2019 on a prospective basis. Therefore, only 2019 disclosures are applicable to be included within the table above. Other current liabilities include amounts accrued by the Partnership and owed to CVR Energy and its affiliates under the shared services agreement of $5.4 million and $3.5 million at December 31, 2019 and 2018, respectively. Refer to Note 9 (“Related Party Transactions”) for additional discussion. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (5) Long-Term Debt Long-term debt consists of the following: December 31, (in thousands) 2019 2018 9.25% Senior Secured Notes, due 2023 (1)(2) $ 645,000 $ 645,000 6.50% Senior Notes, due 2021 2,240 $ 2,240 Unamortized discount and debt issuance costs (3) (14,834) (18,251) Total long-term debt $ 632,406 $ 628,989 (1) This debt was issued at a $16.1 million discount which is being amortized, as interest expense, over the remaining term of the debt. Debt issuance costs associated with this debt totaled $9.4 million. (2) The estimated fair value of total long-term debt outstanding was approximately $673.8 million and $670.8 million as of December 31, 2019 and 2018, respectively. This estimate of fair value is Level 2 as it was determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (3) For the years ended December 31, 2019, 2018, and 2017, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $3.7 million, $3.3 million, and $3.0 million, respectively. Credit Facilities Outstanding (in thousands) Total Capacity Amount borrowed as of December 31, 2019 Outstanding Letters of Credit Available capacity as of December 31, 2019 Maturity Date Asset Based (AB) Credit Facility (1) $ 49,795 $ — $ — $ 49,795 September 30, 2021 (1) At the option of the borrowers, loans under the asset based credit facility initially bear interest at an annual rate equal to (i) 2.00% plus LIBOR or (ii) 1.00% plus a base rate, subject to a 0.50% step-down based on the previous quarter’s excess availability. 9.25% Senior Secured Notes, due 2023 On June 10, 2016, CVR Partners and CVR Nitrogen Finance Corporation (“CVR Nitrogen Finance”), an indirect wholly-owned subsidiary of CVR Partners (together the “2023 Notes Issuers”), certain subsidiary guarantors named therein and Wilmington Trust, National Association, as trustee and as collateral trustee, completed a private offering of $645 million aggregate principal amount of 9.25% Senior Secured Notes due 2023 (the “2023 Notes”). The 2023 Notes mature on June 15, 2023, unless earlier redeemed or repurchased by the issuers. Interest on the 2023 Notes is payable semi-annually in arrears on June 15 and December 15 of each year. The 2023 Notes are guaranteed on a senior secured basis by all of the Partnership’s existing subsidiaries. On or after June 15, 2019, the 2023 Notes Issuers may on any one or more occasions, redeem all or part of the 2023 Notes at the redemption prices set forth below expressed as a percentage of the principal amount of the 2023 Notes plus accrued and unpaid interest to the applicable redemption date. 12-month period beginning June 15, Percentage 2019 104.625% 2020 102.313% 2021 and thereafter 100% The 2023 Notes contain customary covenants for a financing of this type that, among other things, restrict CVR Partners’ ability and the ability of certain of its subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Partnership’s units or redeem or repurchase its subordinated debt; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Partnerships’ restricted subsidiaries to the Partnership; (vii) consolidate, merge or transfer all or substantially all of the Partnerships’ assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. In addition, the indenture contains customary events of default, the occurrence of which would result in or permit the trustee or the holders of at least 25% of the 2023 Notes to cause the acceleration of the 2023 Notes, in addition to the pursuit of other available remedies. 6.50% Senior Notes, due 2021 The Partnership issued $320 million aggregate principal amount of 6.50% Senior Notes due 2021 (the “2021 Notes”) in April 2016, prior to the East Dubuque merger. The 2021 Notes bear interest at a rate 6.50% per annum, payable semi-annually in arrears on April 15 and October 15 of each year. The 2021 Notes are scheduled to mature April 15, 2021, unless repurchased or redeemed earlier in accordance with their terms. The substantial majority of the 2021 Notes were repurchased in June 2016. As of December 31, 2019, 2018, and 2017, $2.2 million of principal amount of the 2021 Notes remained outstanding. Asset Based (AB) Credit Facility On September 30, 2016, CVR Partners entered into a senior secured asset based revolving credit facility (the “AB Credit Facility”) with a group of lenders and UBS AG (“UBS”), as administrative agent and collateral agent. The AB Credit Facility has an aggregate principal amount of availability of up to $50 million with an incremental facility, which permits an increase in borrowings of up to $25 million in the aggregate subject to additional lender commitments and certain other conditions. The AB Credit Facility is scheduled to mature on September 30, 2021. The Partnership is in compliance with all covenants of the 9.25% Senior Secured Notes, the 6.50% Senior Notes, and the AB Credit Facility as of December 31, 2019. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (6) Revenue The following table presents the Partnership’s revenue, disaggregated by major product: Year Ended December 31, (in thousands) 2019 2018 Ammonia $ 94,467 $ 66,254 UAN 251,199 222,329 Urea products 17,430 20,633 Net sales, exclusive of freight and other 363,096 309,216 Freight revenue 33,436 33,567 Other revenue 7,645 8,299 Net sales $ 404,177 $ 351,082 The Partnership sells its products on a wholesale basis under a contract or by purchase order. The Partnership’s contracts with customers generally contain fixed pricing and most have terms of less than one year. The Partnership recognizes revenue at the point in time at which the customer obtains control of the product, which is generally upon delivery and acceptance by the customer. The customer acceptance point is stated in the contract and may be at one of the Partnership’s manufacturing facilities, at one of the Partnership’s off-site loading facilities, or at the customer’s designated facility. Freight revenue recognized by the Partnership represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in cost of materials and other. Qualifying taxes collected from customers and remitted to governmental authorities are not included in reported revenues. Depending on the product sold and the type of contract, payments from customers are generally either due prior to delivery or within 15 to 30 days of product delivery. The Partnership generally provides no warranty other than the implicit promise that goods delivered are free of liens and encumbrances and meet the agreed upon specifications. Product returns are rare, and as such, the Partnership does not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. The Partnership has an immaterial amount of variable consideration for contracts with an original duration of less than a year. A small portion of the Partnership’s revenue includes contracts extending beyond one year, some of which contain variable pricing in which the majority of the variability is attributed to the market-based pricing. The Partnership’s contracts do not contain a significant financing component. The Partnership has an immaterial amount of fee-based revenue, included in other revenue in the table above, that is recognized based on the net amount of the proceeds received. Transaction price allocated to remaining performance obligations As of December 31, 2019, the Partnership had approximately $9.0 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Partnership expects to recognize approximately $4.0 million of these performance obligations as revenue by the end of 2020, an additional $2.9 million in 2021, and the remaining balance thereafter. The Partnership has elected to not disclose the amount of transaction price allocated to remaining performance obligations for contracts with an original expected duration of less than one year. The Partnership has elected to not disclose variable consideration allocated to wholly unsatisfied performance obligations that are based on market prices that have not yet been determined. Contract balances The Partnership’s deferred revenue is a contract liability that primarily relates to fertilizer sales contracts requiring customer prepayment prior to product delivery to guarantee a price and supply of nitrogen fertilizer. Deferred revenue is recorded at the point in time in which a prepaid contract is legally enforceable and the associated right to consideration is unconditional prior to transferring product to the customer. An associated receivable is recorded for uncollected prepaid contract amounts. Contracts requiring prepayment are generally short-term in nature and, as discussed above, revenue is recognized at the point in time in which the customer obtains control of the product. At December 31, 2019, $18.7 million of the deferred revenue balance pertained to prepaid contracts where the associated receivable was recognized as it had not yet been collected by the Partnership. A summary of the deferred revenue activity during the year ended December 31, 2019 is presented below: (in thousands) Balance at December 31, 2018 $ 68,804 Add: New prepay contracts entered into during the period (1) 45,538 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period 67,824 Revenue recognized related to contracts entered into during the period 18,004 Other changes 673 Balance at December 31, 2019 $ 27,841 (1) Includes $26.8 million where payment associated with prepaid contracts was collected. Major Customers CVR Partners has two customers who comprise 28%, 20%, and 16% of net sales for the years ended December 31, 2019, 2018, and 2017, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | (7) Share-Based Compensation CVR Partners’ Phantom Unit Awards CVR Partners has a Long-Term Incentive Plan (“LTIP”) which permits the granting of options, stock and unit appreciation rights (“SARs”), restricted shares, restricted stock units, phantom units, unit awards, substitute awards, other unit-based awards, cash awards, dividend and distribution equivalent rights, share awards, and performance awards (including performance share units, performance units, and performance-based restricted stock). As of December 31, 2019, only phantom unit awards under the LTIP remained outstanding. Individuals who are eligible to receive awards and grants under the LTIP include CVR Energy’s and the Partnership’s employees, officers, consultants, advisors, and directors. A summary of phantom unit award activity and changes under the LTIP during the year ended December 31, 2019 is presented below: (in thousands, except per unit data) Units Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested at December 31, 2018 1,246,815 $ 3.84 $ 4,239 Granted 920,884 3.46 Vested (531,351) 4.03 Forfeited (79,434) 3.83 Non-vested at December 31, 2019 1,556,914 $ 3.55 $ 4,826 Unrecognized compensation expense associated with the phantom units at December 31, 2019 was approximately $3.9 million, which is expected to be recognized over a weighted average period of 1.7 years. Compensation expense recorded for the years ended December 31, 2019, 2018, and 2017 related to awards under the CVR Partners LTIP was approximately $2.3 million, $1.9 million, and $1.1 million, respectively. As of December 31, 2019 and 2018, the Partnership had a liability of $1.2 million and $0.5 million, respectively, for cash settled non-vested phantom unit awards and associated distribution equivalent rights. For the years ended December 31, 2019, 2018, and 2017, the Partnership paid cash of $1.7 million, $1.7 million, and $1.4 million, respectively, to settle liability-classified awards upon vesting. Incentive Unit Awards — CVR Energy CVR Energy grants awards of incentive units and dividend and distribution equivalent rights to certain of its employees and those of its subsidiaries, including CVR GP, who provide shared services for CVR Energy and its subsidiaries, including the Partnership. Costs related to these incentive unit awards are allocated to the Partnership based on time spent on Partnership business. As of December 31, 2019 and 2018, the Partnership had liabilities related to these incentive unit awards of $1.4 million and $0.4 million, respectively, which is recorded in Other current liabilities. For the year ended December 31, 2019, the Partnership had no reimbursements and $0.8 million, and $1.0 million for the years ended December 31, 2018 and 2017, respectively, related to its allocated portion of CVR Energy’s incentive unit awards payments. Total compensation expense for the years ended December 31, 2019, 2018, and 2017 related to the incentive units was $1.0 million, $0.5 million and $1.4 million, respectively. Performance Unit Awards In connection with an employment agreement dated November 1, 2017, the Partnership’s executive chairman received two performance unit awards: A performance unit award was granted for the performance cycle from January 1, 2018 to December 31, 2018 (the “2018 Performance Unit Award”) that vested and was paid in February 2019. Compensation cost for the 2018 Performance Unit Award of $0.1 million was allocated to the Partnership and was recorded within Other current liabilities on the Consolidated Balance Sheets as of December 31, 2018. The Partnership reimbursed CVR Energy for this allocated portion of the performance unit award in 2019. Additionally, on November 1, 2017, CVR Energy entered into a performance unit award agreement (the “2017 Performance Unit Award Agreement”) with our executive chairman representing the right to receive upon vesting, a cash payment equal to $10.0 million if the average closing price of CVR Energy’s common stock over the 30 day trading period from January 4, 2022 to February 15, 2022 is equal to or greater than $60 per share. Compensation costs recognized for the years ended December 31, 2019, 2018, and 2017 were $0.0 million, $0.4 million, and $0.5 million, respectively. As of December 31, 2019 and 2018, the Partnership had an outstanding liability of $0.4 million and $0.4 million, which was recorded in Other current liabilities on the Consolidated Balance Sheets. At December 31, 2019, there was approximately $1.1 million of total unrecognized compensation costs related to the 2017 Performance Unit Award Agreement. Other Benefit Plans CVR Energy sponsors and administers two defined contribution 401(k) plans, the CVR Energy 401(k) Plan and the CVR Energy 401(k) Plan for Represented Employees (the “Plans”), in which employees of the general partner, CVR Partners and its subsidiaries may participate. Participants in the Plans may elect to contribute a designated percentage of their eligible compensation in accordance with the Plans, subject to statutory limits. CVR Partners provides a matching contribution of 100% of the first 6% of eligible compensation contributed by participants. Participants in both Plans are immediately vested in their individual contributions. The Plans provide for a three |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (8) Commitments and Contingencies Supply Commitments The minimum required payments for unconditional purchase obligations, including the natural gas purchases outlined below, are as follows: (in thousands) Unconditional Purchase Obligations Year Ending December 31, 2020 $ 14,005 2021 8,384 2022 7,757 2023 5,715 2024 4,988 Thereafter 39,070 $ 79,919 Supply Commitments - The Partnership is a party to various supply agreements with both related and third parties which commit the Partnership to purchase minimum volumes of hydrogen, oxygen, nitrogen, pet coke, and natural gas to run its plants’ operations. The Partnership is also party to a natural gas supply agreement with a third-party that renews annually. Natural gas expense for the years ended December 31, 2019, 2018, and 2017 totaled approximately $33.1 million, $42.4 million, and $40.1 million, respectively, and is included in cost of materials and other and direct operating expenses (exclusive of depreciation and amortization). The Coffeyville Facility has a hydrogen purchase and sale agreement with CVR Energy’s Coffeyville refinery, pursuant to which it agrees to pay a monthly fixed fee. Additionally, the Coffeyville Facility purchases pet coke under a coke supply agreement. See Note 9 (“Related Party Transactions”) for further discussion of and amounts incurred for the hydrogen purchase and sale agreement and pet coke supply agreement. The Coffeyville Facility is also party to the Amended and Restated On-Site Product Supply Agreement with a third-party, pursuant to which, it is required to take as available and pay for the supply of oxygen and nitrogen to the plant. This agreement expires in April 2020. Expenses associated with this agreement are included in Direct operating expenses (exclusive of depreciation and amortization), and, for the years ended December 31, 2019, 2018, and 2017, totaled approximately $4.2 million, $3.8 million, and $4.2 million, respectively. In addition to the related party coke supply agreement, the Coffeyville Facility has pet coke supply agreements with multiple third-party refineries to purchase 300,000 tons of pet coke at a fixed price through the end of the terms, currently ending in December 2020. The Coffeyville Facility has historically purchased third-party pet coke based on spot purchases and supply agreements in place at the time. The delivered cost of third-party pet coke purchases is included in Cost of materials and other and totaled approximately $10.3 million, $4.8 million, and $4.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. The East Dubuque Facility has a utility service agreement with a third-party energy cooperative. The term of this agreement ends in June 2022 and includes certain charges on a take-or-pay basis. The cost of utilities, including natural gas purchases, is included in Direct operating expenses (exclusive of depreciation and amortization) and amounts associated with this agreement totaled approximately $3.7 million, $10.6 million, and $10.4 million for the years ended December 31, 2019, 2018, and 2017, respectively. Contingencies We do not have any pending litigation or contingencies as of December 31, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (9) Related Party Transactions Activity associated with the Partnership’s related party arrangements for the years ended December 31, 2019, 2018, and 2017 is summarized below: Sales to related parties Year Ended December 31, (in thousands) Related Party 2019 2018 2017 Net sales Feedstock and Shared Services Agreement CRRM (1) $ 119 $ 371 $ 405 Expenses from related parties Year Ended December 31, (in thousands) Related Party 2019 2018 2017 Cost of materials and other Hydrogen Purchase and Sale Agreement CRRM (1) $ 4,648 $ 4,218 $ 4,167 Coke Supply Agreement CRRM (1) 3,628 2,630 1,985 Terminal and Operating Agreement CRT (2) 84 31 61 Direct operating expenses (exclusive of depreciation and amortization) Services Agreement CVR Energy $ 3,390 $ 2,990 $ 3,061 Limited Partnership Agreement CVR GP 728 756 580 Lease Agreement CRRM (1) 117 114 112 Selling, general and administrative expenses Services Agreement CVR Energy $ 15,755 $ 14,157 $ 12,924 Limited Partnership Agreement CVR GP 2,526 2,419 2,691 Amounts due to related parties December 31, (in thousands) Related Party 2019 2018 Prepaid expenses and other current assets Feedstock and Shared Services Agreement: CRRM (1) $ 249 $ 208 Accounts payable to affiliates Feedstock and Shared Services Agreement CRRM (1) $ 788 $ 1,106 Hydrogen Purchase and Sale Agreement CRRM (1) 271 324 Coke Supply Agreement CRRM (1) 15 138 GP Services Agreement CVR GP 1,182 1,372 Other current liabilities Limited Partnership Agreement CVR GP $ 1,327 $ 1,179 Services Agreement CVR Energy 4,124 2,352 Other long-term liabilities Limited Partnership Agreement CVR GP $ 119 $ 503 (1) “CRRM” is Coffeyville Resources Refining and Marketing, LLC, an indirect wholly-owned subsidiary of CVR Energy. (2) “CRT” is Coffeyville Resources Terminal, LLC, an indirect wholly-owned subsidiary of CVR Energy. Feedstock and Shared Services Agreement Our Coffeyville Facility operates under a feedstock and shared services agreement, as amended, (the “Feedstock Agreement”) with CRRM under which the two parties provide feedstock and other services to one another. These feedstocks and services are utilized in the respective production processes of CRRM’s Coffeyville refinery and our Coffeyville Facility. Feedstocks provided under the agreement include, among others, hydrogen, high-pressure steam, nitrogen, instrument air, oxygen, and natural gas. The Feedstock Agreement has an initial term of 20 years, ending in 2031, which will be automatically extended for successive five Coke Supply Agreement Our Coffeyville Facility purchases pet coke from CVR Energy’s Coffeyville refinery under a coke supply agreement (the “Coke Supply Agreement”), which provides that CRRM must deliver, and the Coffeyville Facility must purchase, during each calendar year an annual required amount of pet coke equal to the lesser of (i) 100 percent of the pet coke or (ii) 500,000 tons of pet coke. If during a calendar month, more than 41,667 tons of pet coke is produced and available for purchase, then the Coffeyville Facility will have the option to purchase the excess at the purchase price provided for in the agreement. If the option is declined, CRRM may sell the excess to a third-party. The Partnership’s Coffeyville Facility obtains a significant amount (61% on average during last five years, 40% in 2019) of the pet coke it needs from the Coke Supply Agreement. Any remaining pet coke needs are required to be purchased from various third-parties. See Note 8 (“Commitments and Contingencies”) for further discussion of third-party pet coke supply commitments. The price paid pursuant to the Coke Supply Agreement is based on the lesser of a pet coke price derived from the price received for UAN (the “UAN-based Price”) or a pet coke price index. The UAN-based Price begins with a pet coke price of $25 per ton based on a price per ton for UAN that excludes transportation cost (“netback price”) of $205 per ton, and adjusts up or down $0.50 per ton for every $1.00 change in the netback price. The UAN-based price has a ceiling of $40 per ton and a floor of $5 per ton. The Coke Supply Agreement has an initial term of 20 years, ending in 2027, which will be automatically extended for successive five to a renewal date. The agreement is also terminable by mutual consent of the parties or if a party breaches the agreement and does not cure within applicable cure periods. Additionally, the agreement may be terminated in some circumstances if substantially all of the operations at the Coffeyville Facility or CVR Energy’s Coffeyville refinery are permanently terminated, or if either party is subject to a bankruptcy proceeding or otherwise becomes insolvent. Hydrogen Purchase and Sale Agreement Our Coffeyville Facility and CRRM are parties to a hydrogen purchase and sale agreement (the “Hydrogen Agreement”) pursuant to which CRRM agrees to sell and deliver a committed hydrogen volume of 90,000 mscf per month to the facility. The committed volume pricing is based on a monthly fixed fee (based on the fixed and capital charges associated with producing the committed volume) and a monthly variable fee (based on the natural gas price associated with hydrogen actually received). In the event the Coffeyville Facility fails to take delivery of the full committed volume in a month, the Partnership remains obligated to pay CRRM for the monthly fixed fee and the monthly variable fee based upon the actual hydrogen volume received, if any. In the event CRRM fails to deliver any portion of the committed volume for the applicable month for any reason other than planned repairs and maintenance, the Partnership will be entitled to a pro-rata reduction of the monthly fixed fee. The Partnership also has the option to purchase excess volume of up to 60,000 mscf per month, or more upon mutual agreement, from CRRM, if available for purchase. The agreement has an initial term of 20 years and will be automatically extended following the initial term for additional successive five Water and Facilities Sharing Agreement Our Coffeyville Facility is party to a raw water and facilities sharing agreement with CRRM (the “Water Agreement”) which (i) provides for the allocation of raw water resources between CVR Energy’s Coffeyville refinery and our Coffeyville Facility and (ii) provides for the management of the water intake system (consisting primarily of a water intake structure, water pumps, meters, and a short run of piping between the intake structure and the origin of the separate pipes that transport the water to each facility) which draws raw water from the Verdigris River for both our Coffeyville Facility and CVR Energy’s Coffeyville refinery. Environmental Agreement Our Coffeyville Facility is a party to an environmental agreement with CRRM which provides for certain indemnification and access rights in connection with environmental matters affecting CVR Energy’s Coffeyville refinery and our Coffeyville Facility. To the extent that liability arises from environmental contamination that is caused by CRRM but is also commingled with environmental contamination caused by our Coffeyville Facility, CRRM may elect, in its sole discretion and at its own cost and expense, to perform government mandated environmental activities relating to such liability, subject to certain conditions and provided that CRRM will not waive any rights to indemnification or compensation otherwise provided for in the agreement. No liability under this agreement was recorded as of December 31, 2019 and 2018. Real Estate Transactions Cross-Easement Agreement. Our Coffeyville Facility is party to a cross-easement agreement (the “Easement Agreement”) with CRRM so that both CRNF and CRRM can access and utilize each other’s land in certain circumstances in order to operate their respective businesses. Terminal and Operating Agreement. Our Coffeyville Facility entered into a lease and operating agreement with CRT, under which it leases the premises located at Phillipsburg, Kansas to be utilized as a UAN terminal. The initial term of the agreement will expire in May 2032, provided, however, we may terminate the lease at any time during the initial term by providing 180 days prior written notice. In addition, this agreement will automatically renew for successive five Lease Agreement. Our Coffeyville Facility is party to a lease agreement (the “Lease Agreement”) with CRRM entered into in October 2007 under which we lease certain office and laboratory space. The initial term of the lease was extended an additional year and will expire in October 2020, provided, however, that we may terminate the lease at any time during the initial term by providing 180 days’ prior written notice. In addition, we have the option to renew the lease agreement for up to two additional one Services Agreement CVR Partners obtains certain management and other services from CVR Energy and certain of CVR Energy’s subsidiaries pursuant to a services agreement (the “Services Agreement”) between the Partnership, CVR GP, and CVR Energy. CVR Partners is also party to a Trademark License Agreement with CVR Energy which permits the use of trademarks at no cost. Under the Services Agreement, the general partner has engaged CVR Energy to provide certain services, including the following, among others: • services from CVR Energy’s employees in capacities equivalent to the capacities of corporate executive officers, except that those who serve in such capacities under the agreement will serve the Partnership on a shared, part-time basis only, unless the Partnership and CVR Energy agree otherwise; • administrative and professional services, including legal, accounting, financial reporting, human resources, information technology, communications, insurance, tax, credit, finance, and government and regulatory affairs; • recommendations on capital raising activities to the board of directors of the general partner, including the issuance of debt or equity interests, the entry into credit facilities, and other capital market transactions; • managing or overseeing litigation and administrative or regulatory proceedings, establishing appropriate insurance policies for the Partnership, and providing safety and environmental advice; • recommending the payment of distributions; and • managing or providing advice for other projects, including acquisitions, as may be agreed by the general partner and CVR Energy from time to time. As payment for services provided under the agreement, the Partnership, its general partner, or its subsidiaries must pay CVR Energy (i) all costs incurred by CVR Energy or its affiliates in connection with the employment of its employees who provide the Partnership services under the agreement on a full-time basis; (ii) a prorated share of costs incurred by CVR Energy or its affiliates in connection with the employment of its employees who provide the Partnership services under the agreement on a part-time basis, but excluding certain share-based compensation, and such prorated share shall be determined by CVR Energy on a commercially reasonable basis, based on the percentage of total working time that such shared personnel are engaged in performing services for the Partnership; (iii) a prorated share of certain administrative costs, including office costs, services by outside vendors, other sales, general and administrative costs, and depreciation and amortization; and (iv) various other administrative costs in accordance with the terms of the agreement, including travel, insurance, legal and audit services, government and public relations, and bank charges. For services performed in connection with the services agreement, the Partnership recognized personnel costs, excluding amounts related to share based compensation (refer to Note 7 (“Share-Based Compensation”)), of $7.3 million, $6.6 million, and $6.5 million, respectively, for the years ended December 31, 2019, 2018, and 2017. Limited Partnership Agreement The Partnership’s general partner manages the Partnership’s operations and activities as specified in CVR Partners’ limited partnership agreement. The general partner of the Partnership, CVR GP, is managed by its board of directors. The partnership agreement provides that the Partnership will reimburse CVR GP for all direct and indirect expenses it incurs or payments it makes on behalf of the Partnership, including salary, bonus, incentive compensation, and other amounts paid to any person to perform services for the Partnership or for its general partner in connection with operating the Partnership. GP Services Agreement We are a party to a GP services agreement, as amended, (the “GP Services Agreement”) by and among CVR GP and CVR Energy. This agreement allows CVR Energy to engage CVR GP, in its capacity as our general partner, to provide CVR Energy with (i) business development and related services and (ii) advice or recommendations for such other projects as may be agreed between the Partnership’s general partner and CVR Energy from time to time. As payment for certain specific services provided under the agreement, CVR Energy must pay a prorated share of costs incurred by us or our general partner in connection with the employment of the certain employees who provide CVR Energy services on a part-time basis, as determined by our general partner on a commercially reasonable basis based on the percentage of total working time that such shared personnel are engaged in performing services for CVR Energy. Omnibus Agreement We are party to an omnibus agreement with CVR Energy and our general partner, pursuant to which we have agreed that CVR Energy will have a preferential right to acquire any assets or group of assets that do not constitute assets used in a fertilizer restricted business. In determining whether to exercise any preferential right under the omnibus agreement, CVR Energy will be permitted to act in its sole discretion, without any fiduciary obligation to us or the unitholders whatsoever. These obligations will continue so long as CVR Energy owns at least 50% of our general partner. There was no activity reported under this agreement during the years ended 2019, 2018, and 2017. Replacement Agreements Coffeyville MSA. Effective February 19, 2020, the Conflicts Committee of the board of directors of CVR GP and the audit committee of CVR Energy approved, and CRNF and CRRM entered into, a new Coffeyville Master Service Agreement (the “Coffeyville MSA”) which replaced and consolidated the Feedstock Agreement, the Coke Supply Agreement, the Hydrogen Agreement, the Water Agreement, the Easement Agreement, and the Lease Agreement (collectively, the “Replaced Coffeyville Agreements”) on substantially equivalent terms as the Replaced Coffeyville Agreements. In addition to affirming the terms and services described in the Replaced Coffeyville Agreements and resetting the durations thereof, as applicable, commencing February 19, 2020, the Coffeyville MSA provides for monthly payments, subject to netting, for all goods and services supplied under the Coffeyville MSA. Corporate MSA. Also effective February 19, 2020, the Conflicts Committee of the board of directors of CVR GP and the audit committee of CVR Energy approved, and the parties entered into, a new Corporate Master Service Agreement (the “Corporate MSA”) between CRLLC and certain of its affiliates, including CVR GP and the Partnership and its subsidiaries, which replaced and consolidated the Services Agreement, the GP Services Agreement, and the Trademark License Agreement (collectively, the “Replaced Corporate Agreements”) on substantially equivalent terms as the Replaced Corporate Agreements. In addition to affirming the terms and services described in the Replaced Corporate Agreements and resetting the durations thereof, as applicable, commencing February 19, 2020, the Corporate MSA provides for payment by each service recipient under the Corporate MSA of a monthly fee for goods and services supplied under the Corporate MSA, subject to netting and an annual true up, as well as pass-through of any direct costs incurred on behalf of a service recipient without markup. Property Exchange On October 18, 2019, the audit committee of CVR Energy and the Conflicts Committee of the board of directors of CVR GP each agreed to authorize the exchange of certain parcels of property owned by subsidiaries of CVR Energy with an equal number of parcels owned by subsidiaries of CVR Partners, all located in Coffeyville, Kansas (the “Property Exchange”). On February 19, 2020, a subsidiary of CVR Energy and a subsidiary of CVR Partners executed the Property Exchange agreement. This Property Exchange will enable each such subsidiary to create a more usable, contiguous parcel of land near its own operating footprint. CVR Energy and the Partnership accounted for this transaction in accordance with the ASC 805-50 guidance on transferring assets between entities under common control. This transaction had a net impact to the Partnership’s partners’ capital of approximately $0.1 million. Distributions to CVR Partners’ Unitholders The board of directors of the Partnership’s general partner has a policy for the Partnership to distribute all available cash generated on a quarterly basis. Cash distributions are made to the common unitholders of record on the applicable record date, generally within 60 days after the end of each quarter. Available cash for each quarter is determined by the board of directors of the general partner following the end of such quarter. The following table presents distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, as of December 31, 2019. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2018 - 4th Quarter March 11, 2019 $ 0.12 $ 8,924 $ 4,670 $ 13,594 2019 - 1st Quarter May 13, 2019 0.07 5,205 2,724 7,929 2019 - 2nd Quarter August 12, 2019 0.14 10,411 5,449 15,860 2019 - 3rd Quarter November 11, 2019 0.07 5,205 2,724 7,930 Total distributions $ 0.40 $ 29,745 $ 15,567 $ 45,313 Distributions, if any, including the payment, amount, and timing thereof, are subject to change at the discretion of the Board of Directors of CVR Partners’ general partner. No distributions were declared for the fourth quarter of 2019. The Partnership did not pay distributions during the year ended December 31, 2018, while during the year ended December 31, 2017, it paid a distribution of $0.02 per common unit, or $2.3 million. Of this distribution, CVR Energy received $0.8 million. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (10) Supplemental Cash Flow Information Cash flows related to interest, leases, and capital expenditures included in accounts payable are as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Supplemental disclosures: Cash paid for income taxes, net of refunds (received, net of payments) $ 40 $ 26 $ (195) Cash paid for interest 60,057 60,168 60,081 Cash paid for amounts included in the measurement of lease liabilities (1): Operating cash flows from operating leases 4,019 Operating cash flows from finance leases 20 Financing cash flows from finance leases 321 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable $ 1,618 $ (1,031) $ (2,982) (1) The lease standard was adopted on January 1, 2019 on a prospective basis. Therefore, only 2019 disclosures are applicable to be included within the table above. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | (11) Selected Quarterly Financial Information Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is as follows: Year Ended December 31, 2019 Quarter (in thousands) First Second Third Fourth Net sales $ 91,873 $ 137,660 $ 88,582 $ 86,062 Cost of materials and other (1) 23,730 26,000 21,617 22,756 Direct operating expenses (1) 34,820 45,630 47,557 45,622 Operating income (loss) 9,439 34,544 (7,517) (9,086) Net (loss) income (6,079) 18,968 (22,976) (24,882) Basic and diluted (loss) income per common unit $ (0.05) $ 0.17 $ (0.20) $ (0.22) Basic and diluted weighted-average common units outstanding 113,283 113,283 113,283 113,283 Year Ended December 31, 2018 Quarter (in thousands) First Second Third Fourth Net sales $ 79,859 $ 93,197 $ 79,909 $ 98,117 Cost of materials and other (1) 22,469 19,139 19,590 27,263 Direct operating expenses (1) 38,669 47,465 35,334 37,851 Operating income (loss) (3,421) (790) 2,529 7,996 Net loss (19,051) (16,459) (13,146) (1,371) Basic and diluted loss per common unit $ (0.17) $ (0.15) $ (0.12) $ (0.01) Basic and diluted weighted-average common units outstanding 113,283 113,283 113,283 113,283 (1) Excludes depreciation and amortization expenses. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying Partnership consolidated financial statements, prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), include the accounts of CVR Partners and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Reclassifications | Reclassifications Certain reclassifications have been made within the consolidated financial statements for the years ended December 31, 2018 and 2017 to conform with current presentation. |
Use of Estimates | Use of Estimates We prepare our consolidated financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We review our estimates on an ongoing basis, based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash on hand and on deposit, investments in highly liquid money market accounts, and debt instruments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Our receivables primarily consist of customer accounts receivable recorded at the invoiced amounts and generally do not bear interest. Also included within Accounts Receivable are unbilled fixed price contracts which is further discussed within Note 6 (“Revenue”). |
Inventories | InventoriesInventories consist of fertilizer products which are valued at the lower of first-in, first-out (“FIFO”) cost, or net realizable value. Inventories also include raw materials (primarily gauze, natural gas, and pet coke) and parts and supplies that are valued at the lower of moving-average cost, which approximates FIFO, or net realizable value. The cost of inventories includes inbound freight costs. |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment, including capitalized interest and certain costs allocable to construction and property purchases, are recorded at cost. Expenditures for improvements that increase economic benefit or returns and/or extend useful life are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The lives used in computing depreciation for significant asset classes are as follows: Asset Range of Useful Lives, in Years Land and improvements 15 to 30 Buildings and improvements 20 to 30 Automotive equipment 5 to 15 Machinery and equipment 5 to 30 Other 5 to 30 Property, plant and equipment consisted of the following: December 31, (in thousands) 2019 2018 Machinery and equipment $ 1,378,651 $ 1,362,965 Buildings and improvements 17,221 17,116 Automotive equipment 16,691 16,773 Land and improvements 14,075 13,250 Construction in progress 5,198 15,126 Other 1,752 2,753 1,433,588 1,427,983 Less: Accumulated depreciation 481,629 412,743 Total Property, plant and equipment, net $ 951,959 $ 1,015,240 Leasehold improvements and assets held under finance leases are depreciated or amortized on the straight-line method over the shorter of the contractual lease term or the estimated useful life of the asset. Expenditures for routine maintenance and repair costs are expensed when incurred. Such expenses are reported in Direct operating expenses (exclusive of depreciation and amortization) in the Partnership’s Consolidated Statements of Operations. |
Leases | Leases At inception, the Partnership determines whether an arrangement is a lease and the appropriate lease classification. Operating leases are included as operating lease right-of-use (“ROU”) assets within Other long-term assets and lease liabilities within Other current liabilities and Other long-term liabilities on our Consolidated Balance Sheets. Finance leases are included as ROU finance leases within Property, plant, and equipment, net, and finance lease liabilities within Other current liabilities and Long-term debt, net of current portion on our Consolidated Balance Sheets. Leases with an initial expected term of 12 months or less are considered short-term and are not recorded on our Consolidated Balance Sheets. The Partnership recognizes lease expense for these leases on a straight-line basis over the expected lease term. ROU assets represent the Partnership’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of minimum lease payments over the lease term. The lease term is modified to reflect options to extend or terminate the lease when it is reasonably certain we will exercise such option. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise, in which case the depreciation policy in the “Property, Plant and Equipment” section above is applicable. The periodic lease payments are treated as payments of the lease obligation and interest is recorded as interest expense. See “Recent Accounting Pronouncements - Adoption of Lease Standard” within this Note for a further discussion on the impacts of adopting the lease standard. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Partnership reviews long-lived assets (excluding goodwill, intangible assets with indefinite lives, and deferred tax assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future net cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds its fair value. Assets to be disposed of are reported at the lower of their carrying value or fair value less cost to sell. |
Deferred Financing Costs | Deferred Financing CostsLender and other third-party costs associated with debt issuances are deferred and amortized to interest expense and other financing costs using the effective-interest method over the life of the debt. Deferred financing costs related to line-of-credit arrangements are amortized using the straight-line method through the termination date of the facility. The deferred financing costs are included, net, within long-term debt and in other long-term assets for the line-of-credit arrangements where no debt balance exists. |
Loss Contingencies | Loss ContingenciesIn the ordinary course of business, CVR Partners may become party to lawsuits, administrative proceedings, and governmental investigations, including environmental, regulatory, and other matters. The outcome of these matters cannot always be predicted accurately, but the Partnership accrues liabilities for these matters if the Partnership has determined that it is probable a loss has been incurred and the loss can be reasonably estimated. |
Environmental, Health & Safety (EHS) Matters | Environmental, Health & Safety (“EHS”) MattersThe Partnership is subject to various stringent federal, state, and local environmental, health, and safety rules and regulations. Liabilities related to future remediation costs of past environmental contamination of properties are recognized when the related costs are considered probable and can be reasonably estimated. Estimates of these costs are based upon currently available facts, internal and third-party assessments of contamination, available remediation technology, site-specific costs, and currently enacted laws and regulations. In reporting environmental liabilities, no offset is made for potential recoveries. Loss contingency accruals, including those for environmental remediation, are subject to revision as further information develops or circumstances change and such accruals can take into account the legal liability of other parties. Management periodically reviews and, as appropriate, revises its environmental accruals. Environmental expenditures for capital assets are capitalized at the time of the expenditure when such costs provide future economic benefits. |
Revenue Recognition and Cost Classifications | Revenue Recognition We recognize revenue based on consideration specified in contracts or agreements with customers when we satisfy our performance obligations by transferring control over products or services to a customer. The adoption of ASC 606 resulted in the recognition of deferred revenue and related receivables, on a gross basis, associated with contracts that guarantee a price and supply of nitrogen fertilizer products in quantities expected to be delivered in the normal course of business. Other accounting policies relevant to revenue include: • Excise and other taxes collected from customers and remitted to governmental authorities are excluded from reported revenues; • Revenue transactions that pass control at customers’ designated facilities; • Non-monetary product exchanges which are entered into in the normal course of business are included on a net cost basis in operating expenses on the Consolidated Statements of Operations; and • Pass-through finished goods delivery costs reimbursed by customers are reported in net sales, while an offsetting expense is included in cost of materials and other. Other considerations - Excise and other taxes collected from customers and remitted to governmental authorities are excluded from reported revenues. |
Turnaround Expenses | Turnaround ExpensesThe direct-expense method of accounting is used for turnaround activities. Turnarounds represent major maintenance activities that require for the shutdown of significant parts of a plant to perform necessary inspection, cleaning, repairs, and replacements of assets. Planned turnaround activities for the nitrogen facilities generally occur every two |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC Topic 718, Compensation — Stock Compensation |
Income Taxes | Income Taxes CVR Partners accounts for income taxes utilizing the asset and liability approach. Under this method, deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred amounts are measured using enacted tax rates expected to apply to taxable income in the year those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Allocation of Costs | Allocation of Costs CVR Energy and its subsidiaries provide a variety of services to the Partnership, including employee benefits provided through CVR Energy’s benefit plans, administrative services provided by CVR Energy’s employees and management, insurance, and office space leased by CVR Energy. As such, the accompanying consolidated financial statements include costs that have been incurred by CVR Energy on behalf of the Partnership. These amounts incurred by CVR Energy are then billed or allocated to the Partnership and are classified on the Consolidated Statements of Operations as either Direct operating expenses (exclusive of depreciation and amortization) or as Selling, general and administrative expenses. See Note 9 (“Related Party Transactions”) for a detailed discussion of the billing procedures and the basis for calculating the charges for specific products and services. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - Adoption of Lease Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), creating a new topic, FASB ASC Topic 842, “Leases” (“Topic 842”), which supersedes lease requirements in FASB ASC Topic 840, “Leases.” The new standard revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability related to future lease payments and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term on the balance sheet. We adopted Topic 842 as of January 1, 2019, electing the option to apply the transition provisions at the adoption date instead of the earliest comparative period presented in the financial statements. In connection with the adoption of Topic 842, we made the following elections: • Only ROU assets and the related lease liabilities for leases with an initial term greater than one year were and will be recognized; • The accounting treatment for existing land easements was carried forward; • Lease and non-lease components were not, and will not, be bifurcated for all of the Partnership’s asset groups; and • The portfolio approach was, and will continue to be, used in the selection of the discount rate used to calculate minimum lease payments and the related ROU asset and operating lease liability amounts. The adoption of Topic 842 on January 1, 2019 incrementally impacted the Partnership’s condensed consolidated balance sheet as of that date. The following table presents the financial statement line items impacted by the Partnership’s adoption of Topic 842. (in thousands) December 31, 2018 As Stated Effect of Adoption of January 1, 2019 As Adjusted Current assets: Prepaid expenses and other current assets $ 6,989 $ (2,650) (1) $ 4,339 Total currents assets 193,981 (2,650) 191,331 Other long-term assets 4,198 16,923 (2) 21,121 Total assets $ 1,254,388 $ 14,273 $ 1,268,661 Current liabilities: Other current liabilities $ 24,066 $ 3,462 (3) $ 27,528 Total current liabilities 122,635 3,462 126,097 Long-term liabilities: Other long-term liabilities 2,938 10,811 (3) 13,749 Total long-term liabilities 631,927 10,811 642,738 Equity: Total liabilities and partners’ capital $ 1,254,388 $ 14,273 $ 1,268,661 (1) Represents lease prepayments reclassified to ROU assets. (2) Represents recognition of initial ROU assets for operating leases, including the reclassification of certain lease prepayments. (3) Represents the initial recognition of lease liabilities. Recent Accounting Pronouncements - Adoption of Internal-Use Software Standard In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40). This ASU better aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that’s also a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Effective January 1, 2019, we adopted this ASU and chose to apply the prospective approach for all implementation costs incurred after the date of adoption. We evaluated the effects of adopting this new accounting guidance and concluded it did not have a material impact on the Partnership’s consolidated financial position or results of operations. Recent Accounting Pronouncements - New Accounting Standards Issued But Not Yet Implemented In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU replaces the incurred loss model with a current expected credit loss model for more timely recognition of expected impairment losses for most financial assets and certain other instruments that are not measured at fair value through net income. Effective January 1, 2020, we adopted this ASU and evaluated the effects of adopting this new accounting guidance. The adoption will not have a material impact on the Partnership’s consolidated financial position or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of inventories | Inventories consisted of the following: December 31, (in thousands) 2019 2018 Finished goods $ 17,612 $ 25,136 Raw materials 243 439 Parts, supplies and other 36,075 37,979 Total Inventories $ 53,930 $ 63,554 |
Schedule of lives used in computing depreciation for depreciable assets and components of property, plant and equipment | The lives used in computing depreciation for significant asset classes are as follows: Asset Range of Useful Lives, in Years Land and improvements 15 to 30 Buildings and improvements 20 to 30 Automotive equipment 5 to 15 Machinery and equipment 5 to 30 Other 5 to 30 Property, plant and equipment consisted of the following: December 31, (in thousands) 2019 2018 Machinery and equipment $ 1,378,651 $ 1,362,965 Buildings and improvements 17,221 17,116 Automotive equipment 16,691 16,773 Land and improvements 14,075 13,250 Construction in progress 5,198 15,126 Other 1,752 2,753 1,433,588 1,427,983 Less: Accumulated depreciation 481,629 412,743 Total Property, plant and equipment, net $ 951,959 $ 1,015,240 |
Schedule of effect of Topic 842 on Balance Sheet | The following table presents the financial statement line items impacted by the Partnership’s adoption of Topic 842. (in thousands) December 31, 2018 As Stated Effect of Adoption of January 1, 2019 As Adjusted Current assets: Prepaid expenses and other current assets $ 6,989 $ (2,650) (1) $ 4,339 Total currents assets 193,981 (2,650) 191,331 Other long-term assets 4,198 16,923 (2) 21,121 Total assets $ 1,254,388 $ 14,273 $ 1,268,661 Current liabilities: Other current liabilities $ 24,066 $ 3,462 (3) $ 27,528 Total current liabilities 122,635 3,462 126,097 Long-term liabilities: Other long-term liabilities 2,938 10,811 (3) 13,749 Total long-term liabilities 631,927 10,811 642,738 Equity: Total liabilities and partners’ capital $ 1,254,388 $ 14,273 $ 1,268,661 (1) Represents lease prepayments reclassified to ROU assets. (2) Represents recognition of initial ROU assets for operating leases, including the reclassification of certain lease prepayments. (3) Represents the initial recognition of lease liabilities. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of-use assets for operating and finance leases | Upon initial recognition, our ROU assets for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Railcar leases $ 14,255 Real Estate and other leases (1) 243 Total ROU assets $ 14,498 (1) Includes $0.2 million of finance leases for operating equipment as of January 1, 2019. |
Lease liabilities for operating and finance leases | Upon initial recognition, our lease liabilities for operating and finance leases were comprised of the following: (in thousands) January 1, 2019 (initial recognition) Current liabilities: Operating leases $ 3,462 Finance leases 225 Long-term liabilities: Operating leases 10,811 Total lease liabilities $ 14,498 |
Summary of right of use asset and lease liability balances for operating and finance leases | The following tables summarize the ROU asset and lease liability balances for the Partnership’s operating and finance leases at December 31, 2019: (in thousands) December 31, 2019 Operating Leases: ROU asset, net Railcars $ 10,826 Real estate and other 2,581 Lease liability Railcars $ 11,088 Real estate and other 228 Finance Leases: ROU asset, net Real estate and other $ 201 Lease liability Real estate and other $ 205 |
Lease expense, terms, and discount rates | For the year ended December 31, 2019, we recognized lease expense comprised of the following components: (in thousands) December 31, 2019 Operating lease expense $ 3,122 Finance lease expense: Amortization of ROU asset $ 322 Interest expense on lease liability 10 The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities: December 31, 2019 January 1, 2019 (initial recognition) Weighted-average remaining lease term (years) Operating Leases 3.4 4.3 Finance Leases 2.3 0.5 Weighted-average discount rate Operating Leases 5.1 % 5.1 % Finance Leases 3.9 % 8.0 % |
Summary of remaining minimum lease payments for operating leases | The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at December 31, 2019: (in thousands) Operating Leases Financing Leases 2020 $ 4,019 $ 107 2021 3,467 107 2022 3,026 — 2023 1,163 — 2024 486 — Thereafter 162 — Total lease payments 12,323 214 Less: imputed interest (1,007) (9) Total lease liability $ 11,316 $ 205 |
Summary of remaining minimum lease payments for finance leases | The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at December 31, 2019: (in thousands) Operating Leases Financing Leases 2020 $ 4,019 $ 107 2021 3,467 107 2022 3,026 — 2023 1,163 — 2024 486 — Thereafter 162 — Total lease payments 12,323 214 Less: imputed interest (1,007) (9) Total lease liability $ 11,316 $ 205 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other current liabilities | Other current liabilities were as follows: December 31, (in thousands) 2019 2018 Personnel accruals $ 8,187 $ 7,993 Share-based compensation 5,011 2,667 Operating lease liabilities (1) 3,523 — Accrued interest 2,518 2,516 Sales incentives 1,614 1,727 Prepaid revenue contracts 277 5,863 Other accrued expenses and liabilities 2,913 3,300 Total other current liabilities $ 24,043 $ 24,066 (1) The lease standard was adopted on January 1, 2019 on a prospective basis. Therefore, only 2019 disclosures are applicable to be included within the table above. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt consists of the following: December 31, (in thousands) 2019 2018 9.25% Senior Secured Notes, due 2023 (1)(2) $ 645,000 $ 645,000 6.50% Senior Notes, due 2021 2,240 $ 2,240 Unamortized discount and debt issuance costs (3) (14,834) (18,251) Total long-term debt $ 632,406 $ 628,989 (1) This debt was issued at a $16.1 million discount which is being amortized, as interest expense, over the remaining term of the debt. Debt issuance costs associated with this debt totaled $9.4 million. (2) The estimated fair value of total long-term debt outstanding was approximately $673.8 million and $670.8 million as of December 31, 2019 and 2018, respectively. This estimate of fair value is Level 2 as it was determined by quotations obtained from a broker-dealer who makes a market in these and similar securities. (3) For the years ended December 31, 2019, 2018, and 2017, amortization of the discount on debt and amortization of deferred financing costs reported as Interest expense, net totaled approximately $3.7 million, $3.3 million, and $3.0 million, respectively. Credit Facilities Outstanding (in thousands) Total Capacity Amount borrowed as of December 31, 2019 Outstanding Letters of Credit Available capacity as of December 31, 2019 Maturity Date Asset Based (AB) Credit Facility (1) $ 49,795 $ — $ — $ 49,795 September 30, 2021 |
Schedule of redemption prices as percentage of principal amount | On or after June 15, 2019, the 2023 Notes Issuers may on any one or more occasions, redeem all or part of the 2023 Notes at the redemption prices set forth below expressed as a percentage of the principal amount of the 2023 Notes plus accrued and unpaid interest to the applicable redemption date. 12-month period beginning June 15, Percentage 2019 104.625% 2020 102.313% 2021 and thereafter 100% |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table presents the Partnership’s revenue, disaggregated by major product: Year Ended December 31, (in thousands) 2019 2018 Ammonia $ 94,467 $ 66,254 UAN 251,199 222,329 Urea products 17,430 20,633 Net sales, exclusive of freight and other 363,096 309,216 Freight revenue 33,436 33,567 Other revenue 7,645 8,299 Net sales $ 404,177 $ 351,082 |
Summary of deferred revenue activity | A summary of the deferred revenue activity during the year ended December 31, 2019 is presented below: (in thousands) Balance at December 31, 2018 $ 68,804 Add: New prepay contracts entered into during the period (1) 45,538 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period 67,824 Revenue recognized related to contracts entered into during the period 18,004 Other changes 673 Balance at December 31, 2019 $ 27,841 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the phantom unit award activity and changes under the LTIP | A summary of phantom unit award activity and changes under the LTIP during the year ended December 31, 2019 is presented below: (in thousands, except per unit data) Units Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested at December 31, 2018 1,246,815 $ 3.84 $ 4,239 Granted 920,884 3.46 Vested (531,351) 4.03 Forfeited (79,434) 3.83 Non-vested at December 31, 2019 1,556,914 $ 3.55 $ 4,826 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum required payments for unconditional purchase obligations | The minimum required payments for unconditional purchase obligations, including the natural gas purchases outlined below, are as follows: (in thousands) Unconditional Purchase Obligations Year Ending December 31, 2020 $ 14,005 2021 8,384 2022 7,757 2023 5,715 2024 4,988 Thereafter 39,070 $ 79,919 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Activity associated with the Partnership’s related party arrangements for the years ended December 31, 2019, 2018, and 2017 is summarized below: Sales to related parties Year Ended December 31, (in thousands) Related Party 2019 2018 2017 Net sales Feedstock and Shared Services Agreement CRRM (1) $ 119 $ 371 $ 405 Expenses from related parties Year Ended December 31, (in thousands) Related Party 2019 2018 2017 Cost of materials and other Hydrogen Purchase and Sale Agreement CRRM (1) $ 4,648 $ 4,218 $ 4,167 Coke Supply Agreement CRRM (1) 3,628 2,630 1,985 Terminal and Operating Agreement CRT (2) 84 31 61 Direct operating expenses (exclusive of depreciation and amortization) Services Agreement CVR Energy $ 3,390 $ 2,990 $ 3,061 Limited Partnership Agreement CVR GP 728 756 580 Lease Agreement CRRM (1) 117 114 112 Selling, general and administrative expenses Services Agreement CVR Energy $ 15,755 $ 14,157 $ 12,924 Limited Partnership Agreement CVR GP 2,526 2,419 2,691 Amounts due to related parties December 31, (in thousands) Related Party 2019 2018 Prepaid expenses and other current assets Feedstock and Shared Services Agreement: CRRM (1) $ 249 $ 208 Accounts payable to affiliates Feedstock and Shared Services Agreement CRRM (1) $ 788 $ 1,106 Hydrogen Purchase and Sale Agreement CRRM (1) 271 324 Coke Supply Agreement CRRM (1) 15 138 GP Services Agreement CVR GP 1,182 1,372 Other current liabilities Limited Partnership Agreement CVR GP $ 1,327 $ 1,179 Services Agreement CVR Energy 4,124 2,352 Other long-term liabilities Limited Partnership Agreement CVR GP $ 119 $ 503 (1) “CRRM” is Coffeyville Resources Refining and Marketing, LLC, an indirect wholly-owned subsidiary of CVR Energy. (2) “CRT” is Coffeyville Resources Terminal, LLC, an indirect wholly-owned subsidiary of CVR Energy. |
Schedule of distributions paid | The following table presents distributions paid by the Partnership to CVR Partners’ unitholders, including amounts paid to CVR Energy, as of December 31, 2019. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2018 - 4th Quarter March 11, 2019 $ 0.12 $ 8,924 $ 4,670 $ 13,594 2019 - 1st Quarter May 13, 2019 0.07 5,205 2,724 7,929 2019 - 2nd Quarter August 12, 2019 0.14 10,411 5,449 15,860 2019 - 3rd Quarter November 11, 2019 0.07 5,205 2,724 7,930 Total distributions $ 0.40 $ 29,745 $ 15,567 $ 45,313 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Cash flows related to interest, leases, and capital expenditures included in accounts payable are as follows: Year Ended December 31, (in thousands) 2019 2018 2017 Supplemental disclosures: Cash paid for income taxes, net of refunds (received, net of payments) $ 40 $ 26 $ (195) Cash paid for interest 60,057 60,168 60,081 Cash paid for amounts included in the measurement of lease liabilities (1): Operating cash flows from operating leases 4,019 Operating cash flows from finance leases 20 Financing cash flows from finance leases 321 Non-cash investing and financing activities: Change in capital expenditures included in accounts payable $ 1,618 $ (1,031) $ (2,982) (1) The lease standard was adopted on January 1, 2019 on a prospective basis. Therefore, only 2019 disclosures are applicable to be included within the table above. |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial data | Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is as follows: Year Ended December 31, 2019 Quarter (in thousands) First Second Third Fourth Net sales $ 91,873 $ 137,660 $ 88,582 $ 86,062 Cost of materials and other (1) 23,730 26,000 21,617 22,756 Direct operating expenses (1) 34,820 45,630 47,557 45,622 Operating income (loss) 9,439 34,544 (7,517) (9,086) Net (loss) income (6,079) 18,968 (22,976) (24,882) Basic and diluted (loss) income per common unit $ (0.05) $ 0.17 $ (0.20) $ (0.22) Basic and diluted weighted-average common units outstanding 113,283 113,283 113,283 113,283 Year Ended December 31, 2018 Quarter (in thousands) First Second Third Fourth Net sales $ 79,859 $ 93,197 $ 79,909 $ 98,117 Cost of materials and other (1) 22,469 19,139 19,590 27,263 Direct operating expenses (1) 38,669 47,465 35,334 37,851 Operating income (loss) (3,421) (790) 2,529 7,996 Net loss (19,051) (16,459) (13,146) (1,371) Basic and diluted loss per common unit $ (0.17) $ (0.15) $ (0.12) $ (0.01) Basic and diluted weighted-average common units outstanding 113,283 113,283 113,283 113,283 (1) Excludes depreciation and amortization expenses. |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - manufacturing_facility | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Formation of the Partnership, Organization and Nature of Business | ||
Number of manufacturing facilities | 2 | |
Percentage of limited partner interest held by the public | 66.00% | 66.00% |
IEP Energy LLC | CVR Energy, Inc | ||
Formation of the Partnership, Organization and Nature of Business | ||
Aggregate ownership percentage | 71.00% | 71.00% |
CRLLC | CVR Partner | ||
Formation of the Partnership, Organization and Nature of Business | ||
Limited partner interest | 34.00% | 34.00% |
CRLLC | CVR GP | ||
Formation of the Partnership, Organization and Nature of Business | ||
General partner interest | 100.00% | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable, net and Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory, Net [Abstract] | ||
Finished goods | $ 17,612 | $ 25,136 |
Raw materials | 243 | 439 |
Parts, supplies and other | 36,075 | 37,979 |
Total Inventories | 53,930 | 63,554 |
Inventory depreciation | $ 4,500 | $ 5,700 |
Accounts receivable | Customer concentration | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of concentration risk | 18.00% | 25.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment and Impairment of Long-Lived Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 1,433,588,000 | $ 1,427,983,000 | |
Less: Accumulated depreciation | 481,629,000 | 412,743,000 | |
Total Property, plant and equipment, net | 951,959,000 | 1,015,240,000 | |
Impairment of Long-Lived Assets | |||
Goodwill impairments | 0 | $ 0 | $ 0 |
Approximate percentage by which fair value of Coffeyville reporting unit exceeded carrying value | 36.00% | 12.00% | |
Land and improvements | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 14,075,000 | $ 13,250,000 | |
Land and improvements | Minimum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 15 years | ||
Land and improvements | Maximum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 30 years | ||
Buildings and improvements | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 17,221,000 | 17,116,000 | |
Buildings and improvements | Minimum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 30 years | ||
Automotive equipment | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 16,691,000 | 16,773,000 | |
Automotive equipment | Minimum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 5 years | ||
Automotive equipment | Maximum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 15 years | ||
Machinery and equipment | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 1,378,651,000 | 1,362,965,000 | |
Machinery and equipment | Minimum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 30 years | ||
Construction in Progress | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 5,198,000 | 15,126,000 | |
Other | |||
Property, Plant, and Equipment | |||
Gross property, plant and equipment | $ 1,752,000 | $ 2,753,000 | |
Other | Minimum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 5 years | ||
Other | Maximum | |||
Property, Plant, and Equipment | |||
Useful life (in years) | 30 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Environmental Matters and Turnaround Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Environmental Matters | |||
Liabilities recognized for environmental remediation matters | $ 0 | $ 0 | |
Nitrogen Fertilizer Segment | |||
Planned Major Maintenance Activities [Line Items] | |||
Turnaround costs | $ 9,800,000 | $ 6,400,000 | $ 2,600,000 |
Minimum | |||
Planned Major Maintenance Activities [Line Items] | |||
Frequency of planned major maintenance activities | 2 years | ||
Maximum | |||
Planned Major Maintenance Activities [Line Items] | |||
Frequency of planned major maintenance activities | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Effect of Topic 842 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Current assets: | |||
Prepaid expenses and other current assets | $ 5,406 | $ 4,339 | $ 6,989 |
Total currents assets | 130,594 | 191,331 | 193,981 |
Other long-term assets | 14,433 | 21,121 | 4,198 |
Total assets | 1,137,955 | 1,268,661 | 1,254,388 |
Current liabilities: | |||
Other current liabilities | 24,043 | 27,528 | 24,066 |
Total current liabilities | 75,531 | 126,097 | 122,635 |
Long-term liabilities: | |||
Other long-term liabilities | 10,474 | 13,749 | 2,938 |
Total long-term liabilities | 642,880 | 642,738 | 631,927 |
Equity: | |||
Total liabilities and partners’ capital | $ 1,137,955 | 1,268,661 | $ 1,254,388 |
Effect of Adoption of Topic 842 - Leases | |||
Current assets: | |||
Prepaid expenses and other current assets | (2,650) | ||
Total currents assets | (2,650) | ||
Other long-term assets | 16,923 | ||
Total assets | 14,273 | ||
Current liabilities: | |||
Other current liabilities | 3,462 | ||
Total current liabilities | 3,462 | ||
Long-term liabilities: | |||
Other long-term liabilities | 10,811 | ||
Total long-term liabilities | 10,811 | ||
Equity: | |||
Total liabilities and partners’ capital | $ 14,273 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Leases - ROU Assets (Details)
Leases - ROU Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Total ROU assets | $ 14,498 | |
Railcar leases | ||
Lessee, Lease, Description [Line Items] | ||
Total ROU assets | 14,255 | |
Real estate and other leases | ||
Lessee, Lease, Description [Line Items] | ||
Total ROU assets | 243 | |
Finance leases for operating equipment | $ 201 | $ 200 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Current liabilities: | ||
Operating leases | $ 3,523 | $ 3,462 |
Finance leases | 225 | |
Long-term liabilities: | ||
Operating leases | 10,811 | |
Total lease liabilities | $ 14,498 |
Leases - Balance Sheet Summary
Leases - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases: | ||
Lease liability | $ 11,316 | |
Finance Leases: | ||
Lease liability | 205 | |
Railcars | ||
Operating Leases: | ||
ROU asset, net | 10,826 | |
Lease liability | 11,088 | |
Real estate and other | ||
Operating Leases: | ||
ROU asset, net | 2,581 | |
Lease liability | 228 | |
Finance Leases: | ||
ROU asset, net | 201 | $ 200 |
Lease liability | $ 205 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 3,122 |
Finance lease expense: | |
Amortization of ROU asset | 322 |
Interest expense on lease liability | 10 |
Short-term lease expense | $ 400 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Dec. 31, 2019 | Jan. 01, 2019 |
Weighted-average remaining lease term (years) | ||
Operating Leases | 3 years 4 months 24 days | 4 years 3 months 18 days |
Finance Leases | 2 years 3 months 18 days | 6 months |
Weighted-average discount rate | ||
Operating Leases | 5.10% | 5.10% |
Finance Leases | 3.90% | 8.00% |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 4,019 |
2021 | 3,467 |
2022 | 3,026 |
2023 | 1,163 |
2024 | 486 |
Thereafter | 162 |
Total lease payments | 12,323 |
Less: imputed interest | (1,007) |
Total lease liability | 11,316 |
Financing Leases | |
2020 | 107 |
2021 | 107 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | 214 |
Less: imputed interest | (9) |
Total lease liability | $ 205 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | |||
Personnel accruals | $ 8,187 | $ 7,993 | |
Share-based compensation | 5,011 | 2,667 | |
Operating lease liabilities | 3,523 | $ 3,462 | |
Accrued interest | 2,518 | 2,516 | |
Sales incentives | 1,614 | 1,727 | |
Prepaid revenue contracts | 277 | 5,863 | |
Other accrued expenses and liabilities | 2,913 | 3,300 | |
Total other current liabilities | 24,043 | $ 27,528 | 24,066 |
Affiliate balances | $ 5,400 | $ 3,500 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 10, 2016 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | ||||||
Unamortized discount and debt issuance costs | $ (14,834) | $ (18,251) | ||||
Total long-term debt | 632,406 | 628,989 | ||||
Amortization of deferred financing costs and original issue discount | 3,666 | 3,333 | $ 3,046 | |||
Level 2 | ||||||
Debt Instrument [Line Items] | ||||||
Fair value of debt | 673,800 | 670,800 | ||||
Senior Notes | 9.25% Senior Secured Notes due June 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt, before debt issuance costs and discount | $ 645,000 | 645,000 | ||||
Debt instrument, percentage rate | 9.25% | 9.25% | 9.25% | |||
Unamortized debt discount | $ 16,100 | |||||
Debt issuance costs | 9,400 | |||||
Senior Notes | 6.50% Senior Notes, due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt, before debt issuance costs and discount | $ 2,240 | $ 2,240 | $ 2,200 | |||
Debt instrument, percentage rate | 6.50% | 6.50% |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities Outstanding (Details) - Asset Based (AB) Credit Facility - Line of Credit - Revolving credit facility | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 49,795,000 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 0 |
Available Capacity | $ 49,795,000 |
LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 2.00% |
Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 1.00% |
Step-down percentage based on the previous quarter's excess availability | 0.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 10, 2016 | Apr. 30, 2016 |
Senior Notes | 2023 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 645,000,000 | ||||||
Debt instrument, percentage rate | 9.25% | 9.25% | 9.25% | ||||
Minimum percentage of notes held in order to cause acceleration of notes upon occurrence of events of default | 25.00% | ||||||
Amount outstanding | $ 645,000,000 | $ 645,000,000 | |||||
Senior Notes | 2021 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 320,000,000 | ||||||
Debt instrument, percentage rate | 6.50% | 6.50% | |||||
Amount outstanding | $ 2,240,000 | $ 2,240,000 | $ 2,200,000 | ||||
Line of Credit | AB Credit Facility | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 50,000,000 | ||||||
Available increase in borrowing limit | $ 25,000,000 |
Long-Term Debt - Redemption Pri
Long-Term Debt - Redemption Price (Details) - Senior Notes - 2023 Notes | 12 Months Ended |
Dec. 31, 2019 | |
12-Month Period Beginning June 15, 2019 | |
Debt Instrument, Redemption [Line Items] | |
Redemption prices as percentage of principal amount | 104.625% |
12-Month Period Beginning June 15, 2020 | |
Debt Instrument, Redemption [Line Items] | |
Redemption prices as percentage of principal amount | 102.313% |
12-Month Period Beginning June 15, 2021 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Redemption prices as percentage of principal amount | 100.00% |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 86,062 | $ 88,582 | $ 137,660 | $ 91,873 | $ 98,117 | $ 79,909 | $ 93,197 | $ 79,859 | $ 404,177 | $ 351,082 | $ 330,802 |
Net sales, exclusive of freight and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 363,096 | 309,216 | |||||||||
Ammonia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 94,467 | 66,254 | |||||||||
UAN | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 251,199 | 222,329 | |||||||||
Urea products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 17,430 | 20,633 | |||||||||
Freight revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 33,436 | 33,567 | |||||||||
Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 7,645 | $ 8,299 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Prepaid contracts where associated receivable was recognized as not yet collected | $ 18.7 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 15 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Revenue - Remaining performance
Revenue - Remaining performance obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2.9 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2.1 |
Remaining performance obligation, expected timing of satisfaction, period |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | $ 68,804 |
Add: | |
New prepay contracts entered into during the period | 45,538 |
Less: | |
Revenue recognized that was included in the contract liability balance at the beginning of the period | 67,824 |
Revenue recognized related to contracts entered into during the period | 18,004 |
Other changes | 673 |
Balance at end of period | 27,841 |
Prepaid contracts where payment was collected | $ 26,800 |
Revenue - Sales to Major Custom
Revenue - Sales to Major Customers (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total Net Sales | Customer concentration | Two Customers | |||
Major Customers and Suppliers | |||
Concentration risk | 28.00% | 20.00% | 16.00% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Phantom Unit Award Activity (Details) - CVR Partners LTIP - Phantom Unit Awards - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Units | ||
Non-vested at the beginning of the period (in units) | 1,246,815 | |
Granted (in units) | 920,884 | |
Vested (in units) | (531,351) | |
Forfeited (in units) | (79,434) | |
Non-vested at the end of the period (in units) | 1,556,914 | |
Weighted- Average Grant Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per unit) | $ 3.84 | |
Granted (in dollars per unit) | 3.46 | |
Vested (in dollars per unit) | 4.03 | |
Forfeited (in dollars per unit) | 3.83 | |
Non-vested at the end of the period (in dollars per unit) | $ 3.55 | |
Aggregate Intrinsic Value | $ 4,826 | $ 4,239 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | Nov. 01, 2017USD ($)trading_dayshares$ / shares | Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liabilities for unvested awards related to employees | $ 5,011,000 | $ 2,667,000 | ||
Outstanding liability | $ 8,187,000 | 7,993,000 | ||
Number of plans | plan | 2 | |||
Employer match of employee contribution of the first 6% of the participant's contribution | 100.00% | |||
Percentage of eligible compensation, matched by employer | 6.00% | |||
Vesting schedule for employer's matching funds | 3 years | |||
Matching contributions made during the year | $ 1,800,000 | 1,800,000 | $ 1,600,000 | |
Phantom Unit Awards | CVR Partners LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 3,900,000 | |||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | |||
Compensation expense | $ 2,300,000 | 1,900,000 | 1,100,000 | |
Liabilities for unvested awards related to employees | 1,200,000 | 500,000 | ||
Amount paid to settle liability-classified awards upon vesting | 1,700,000 | 1,700,000 | 1,400,000 | |
Incentive Unit Awards | CVR Energy, Inc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 1,000,000 | 500,000 | 1,400,000 | |
Liabilities for unvested awards related to employees | 1,400,000 | 400,000 | ||
Share-based liabilities paid | 0 | 800,000 | 1,000,000 | |
Performance Unit Awards | Executive Chairman | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards received (in units) | shares | 2 | |||
Performance Unit Awards | 2018 Performance Unit Award | CVR Energy, Inc | Executive Chairman | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 100,000 | |||
Performance Unit Awards | 2017 Performance Unit Award Agreement | CVR Energy, Inc | Executive Chairman | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 1,100,000 | |||
Compensation expense | 0 | 400,000 | $ 500,000 | |
Maximum cash payment | $ 10,000,000 | |||
Period for determination of cash payment value | trading_day | 30 | |||
Maximum price per share to trigger maximum cash payment (in dollars per unit) | $ / shares | $ 60 | |||
Outstanding liability | $ 400,000 | $ 400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Required Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Unconditional Purchase Obligations | |
2020 | $ 14,005 |
2021 | 8,384 |
2022 | 7,757 |
2023 | 5,715 |
2024 | 4,988 |
Thereafter | 39,070 |
Unconditional Purchase Obligations | $ 79,919 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)T | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Pet Coke Purchase Agreement | |||
Long-term Purchase Commitment [Line Items] | |||
Expenses related to agreement | $ 10.3 | $ 4.8 | $ 4 |
Utility Service Agreement | |||
Long-term Purchase Commitment [Line Items] | |||
Expenses related to agreement | 3.7 | 10.6 | 10.4 |
CRNF | Amended and Restated On-Site Product Supply Agreement | |||
Long-term Purchase Commitment [Line Items] | |||
Expenses related to agreement | 4.2 | 3.8 | 4.2 |
Natural Gas | |||
Long-term Purchase Commitment [Line Items] | |||
Cost of materials and other and direct operating expenses (exclusive of depreciation and amortization) | $ 33.1 | $ 42.4 | $ 40.1 |
Petroleum coke | Pet Coke Purchase Agreement | |||
Long-term Purchase Commitment [Line Items] | |||
Number of tons of pet coke agreed to purchase at fixed price through end of term | T | 300,000 |
Related Party Transactions - Sa
Related Party Transactions - Sales to Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||||||
Net sales | $ 86,062 | $ 88,582 | $ 137,660 | $ 91,873 | $ 98,117 | $ 79,909 | $ 93,197 | $ 79,859 | $ 404,177 | $ 351,082 | $ 330,802 |
CRRM | Feedstock and Shared Services Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Net sales | $ 119 | $ 371 | $ 405 |
Related Party Transactions - Ex
Related Party Transactions - Expenses From Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | $ 22,756 | $ 21,617 | $ 26,000 | $ 23,730 | $ 27,263 | $ 19,590 | $ 19,139 | $ 22,469 | $ 94,103 | $ 88,461 | $ 84,874 |
Direct operating expenses (exclusive of depreciation and amortization) | $ 45,622 | $ 47,557 | $ 45,630 | $ 34,820 | $ 37,851 | $ 35,334 | $ 47,465 | $ 38,669 | 173,629 | 159,319 | 156,357 |
Selling, general and administrative expenses | 25,829 | 25,023 | 25,630 | ||||||||
Hydrogen Purchase and Sale Agreement | CRRM | Hydrogen | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | 4,648 | 4,218 | 4,167 | ||||||||
Coke Supply Agreement | CRRM | Petroleum coke | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | 3,628 | 2,630 | 1,985 | ||||||||
Terminal and Operating Agreement | CRT | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | 84 | 31 | 61 | ||||||||
Services Agreement | CVR Energy | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization) | 3,390 | 2,990 | 3,061 | ||||||||
Selling, general and administrative expenses | 15,755 | 14,157 | 12,924 | ||||||||
Limited Partnership Agreement | CVR GP | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization) | 728 | 756 | 580 | ||||||||
Selling, general and administrative expenses | 2,526 | 2,419 | 2,691 | ||||||||
Lease Agreement | CRRM | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization) | $ 117 | $ 114 | $ 112 |
Related Party Transactions - Am
Related Party Transactions - Amounts Due Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Accounts payable to affiliates | $ 2,578 | $ 2,976 |
Other current liabilities | 5,400 | 3,500 |
CRRM | Feedstock and Shared Services Agreement | ||
Related Party Transaction [Line Items] | ||
Prepaid expenses and other current assets | 249 | 208 |
Accounts payable to affiliates | 788 | 1,106 |
CRRM | Hydrogen Purchase and Sale Agreement | Hydrogen | ||
Related Party Transaction [Line Items] | ||
Accounts payable to affiliates | 271 | 324 |
CRRM | Coke Supply Agreement | Petroleum coke | ||
Related Party Transaction [Line Items] | ||
Accounts payable to affiliates | 15 | 138 |
CVR GP | Services Agreement | ||
Related Party Transaction [Line Items] | ||
Accounts payable to affiliates | 1,182 | 1,372 |
CVR GP | Limited Partnership Agreement | ||
Related Party Transaction [Line Items] | ||
Other current liabilities | 1,327 | 1,179 |
CVR Energy | Services Agreement | ||
Related Party Transaction [Line Items] | ||
Other current liabilities | 4,124 | 2,352 |
CVR Energy | Limited Partnership Agreement | ||
Related Party Transaction [Line Items] | ||
Other long-term liabilities | $ 119 | $ 503 |
Related Party Transactions - Fe
Related Party Transactions - Feedstock and Shared Service Agreement (Details) - Feedstock and Shared Services Agreement - The Coffeyville Facility - CRRM | 12 Months Ended |
Dec. 31, 2019affiliate | |
Related Party Transaction [Line Items] | |
Number of parties | 2 |
Term of agreement | 20 years |
Renewal period of agreement | 5 years |
Notice period for termination of agreement | 3 years |
Related Party Transactions - Co
Related Party Transactions - Coke Supply Agreement (Details) - The Coffeyville Facility - CRRM - Coke Supply Agreement - Petroleum coke | 12 Months Ended |
Dec. 31, 2019T$ / T | |
Related Party Transaction [Line Items] | |
Percentage of annual production of pet coke to be delivered | 100.00% |
Annual production of pet coke (in tons) | T | 500,000 |
Period for which average percentage of product obtained | 5 years |
Rate petroleum coke price used to determine urea ammonium nitrate based price (in dollars per ton) | 25 |
UAN-based netback price, exclusive of transportation cost, under the related party agreement (in dollars per ton) | 205 |
Pet coke price adjustment for every $1.00 change in the UAN netback price, exclusive of transportation cost, used to calculate the UAN-based price under the related party agreement (in dollars per ton) | 0.50 |
UAN-based netback price change, exclusive of transportation cost, under the related party agreement (in dollars per ton) | 1 |
Initial term of agreement | 20 years |
Renewal period of agreement | 5 years |
Notice period for termination of agreement | 3 years |
Minimum | |
Related Party Transaction [Line Items] | |
Monthly production volume of product which allows for the purchasing party the option to purchase any excess at rates stated in the agreement (in tons) | T | 41,667 |
Average percentage of pet coke obtained during the last five years | 61.00% |
Average percentage of pet coke obtained during the current year | 40.00% |
Rate petroleum coke price used to determine urea ammonium nitrate based price (in dollars per ton) | 5 |
Maximum | |
Related Party Transaction [Line Items] | |
Rate petroleum coke price used to determine urea ammonium nitrate based price (in dollars per ton) | 40 |
Related Party Transactions - Hy
Related Party Transactions - Hydrogen Purchase and Sale Agreement (Details) - The Coffeyville Facility - CRRM - Hydrogen Purchase and Sale Agreement - Hydrogen | 12 Months Ended |
Dec. 31, 2019Mcf | |
Related Party Transaction [Line Items] | |
Monthly production volume of product to be delivered (in mscf) | 90,000 |
Optional excess volume that can be purchased per month (in mscf) | 60,000 |
Initial term of agreement | 20 years |
Additional renewal term | 5 years |
Minimum notice period for termination of agreement | 180 days |
Related Party Transactions - En
Related Party Transactions - Environmental Agreement (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
The Coffeyville Facility | Environmental Agreement | CRRM | ||
Related Party Transaction [Line Items] | ||
Liability recorded under agreement | $ 0 | $ 0 |
Related Party Transactions - Re
Related Party Transactions - Real Estate Transactions (Details) - The Coffeyville Facility | 12 Months Ended |
Dec. 31, 2019USD ($)period$ / T | |
CRT | Terminal and Operating Agreement | |
Related Party Transaction [Line Items] | |
Prior written notice required to terminate initial lease term | 180 days |
Automatic renewal of agreement, term of each successive renewal | 5 years |
Prior written notice required to terminate renewal lease term | 180 days |
Amount required to pay per year for rent | $ | $ 1 |
Amount required to pay per ton of UAN placed into the terminal (in dollars per ton) | 4 |
Amount required to pay per ton of UAN taken out of the terminal (in dollars per ton) | 4 |
CRRM | Lease Agreement | |
Related Party Transaction [Line Items] | |
Prior written notice required to terminate initial lease term | 180 days |
Automatic renewal of agreement, term of each successive renewal | 1 year |
Prior written notice required to terminate renewal lease term | 60 days |
Option to renew lease agreement, number of additional periods (up to) | period | 2 |
Related Party Transactions - Se
Related Party Transactions - Services Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CVR Energy | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Personnel costs | $ 7.3 | $ 6.6 | $ 6.5 |
Related Party Transactions - Pr
Related Party Transactions - Property Exchange (Details) $ in Millions | Feb. 19, 2020USD ($) |
CVR Energy, Inc | Subsequent Event | CVR Partner | |
Related Party Transaction [Line Items] | |
Property exchange, net impact to partners' capital | $ 0.1 |
Related Party Transactions - Di
Related Party Transactions - Distributions Paid (Details) - USD ($) | Nov. 11, 2019 | Aug. 12, 2019 | May 13, 2019 | Mar. 11, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Distribution Made to Limited Partner [Line Items] | ||||||||
Distribution Per Common Unit (in dollars per unit) | $ 0.07 | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.40 | $ 0 | $ 0.02 | |
Distributions Paid | $ 7,930,000 | $ 15,860,000 | $ 7,929,000 | $ 13,594,000 | $ 45,313,000 | $ 2,300,000 | ||
Distributions declared | $ 0 | |||||||
CVR Energy | ||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||
Distributions Paid | 2,724,000 | 5,449,000 | 2,724,000 | 4,670,000 | 15,567,000 | $ 800,000 | ||
Public Unitholders | ||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||
Distributions Paid | $ 5,205,000 | $ 10,411,000 | $ 5,205,000 | $ 8,924,000 | $ 29,745,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental disclosures: | |||
Cash paid for income taxes, net of refunds (received, net of payments) | $ 40 | $ 26 | $ (195) |
Cash paid for interest | 60,057 | 60,168 | 60,081 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 4,019 | ||
Operating cash flows from finance leases | 20 | ||
Financing cash flows from finance leases | 321 | ||
Non-cash investing and financing activities: | |||
Change in capital expenditures included in accounts payable | $ 1,618 | $ (1,031) | $ (2,982) |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 86,062 | $ 88,582 | $ 137,660 | $ 91,873 | $ 98,117 | $ 79,909 | $ 93,197 | $ 79,859 | $ 404,177 | $ 351,082 | $ 330,802 |
Cost of materials and other | 22,756 | 21,617 | 26,000 | 23,730 | 27,263 | 19,590 | 19,139 | 22,469 | 94,103 | 88,461 | 84,874 |
Direct operating expenses | 45,622 | 47,557 | 45,630 | 34,820 | 37,851 | 35,334 | 47,465 | 38,669 | 173,629 | 159,319 | 156,357 |
Operating income (loss) | (9,086) | (7,517) | 34,544 | 9,439 | 7,996 | 2,529 | (790) | (3,421) | 27,380 | 6,314 | (10,278) |
Net loss | $ (24,882) | $ (22,976) | $ 18,968 | $ (6,079) | $ (1,371) | $ (13,146) | $ (16,459) | $ (19,051) | $ (34,969) | $ (50,027) | $ (72,788) |
Basic and diluted (loss) income per common unit (in dollars per unit) | $ (0.22) | $ (0.20) | $ 0.17 | $ (0.05) | $ (0.01) | $ (0.12) | $ (0.15) | $ (0.17) | $ (0.31) | $ (0.44) | $ (0.64) |
Basic and diluted weighted-average common units outstanding (in units) | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 | 113,283 |