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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: LTBH who wrote (52829)	11/22/2013 3:48:21 PM
From: E_K_S	Read Replies (1) \| Respond to of 78650

CVR Partners, LP (UAN) -NYSE - started a small buy @ $17.26/share at/near 52wk low. Started a small position in UAN. I am not worried about Ichan and the parent company CVR Energy, Inc. (CVI) impacting UAN much. Perhaps they dump some of the shares of UAN they may hold but their refining operations adjacent to the UAN facility needs UAN to process their "pet-coke". Long term, I think "pet-coke" is/will be a disposal problem for the refiners (especially those that process the Canadian Sands Oil). Owning UAN, I can stay tuned to "pet-coke" industry issues and if UAN has or will have any dealing to build and/or consult on new facilities (perhaps on a royalty or licensing arrangement) as they have the technology that works and is cost effective in the current market. It could be a real game changer if the EPA starts to fine the "pet-coke" producers. There is now an incentive for these refiners to partner with a company like UAN to build similar facilities that use "pet-coke" as it's primary feed stock. So for me, the value proposition is in their technology. I may add on any 3% drop (or more) from current levels. My buy today only represents 0.27% portfolio interest which I may increase to a 2% portfolio position if I find their process is the current state-of-the-art solution to the disposal of "pet-coke". EKS

To: LTBH who wrote (52829)	11/23/2013 12:24:33 AM
From: MNTNH	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78650

(UAN) CVR Partners LP Pet Coke as feedstock is certainly interesting. If the oil majors are desperate enough, I dont think a lack of proprietory technology will keep them from wanting to dump it to UAN for conversion to fertilizers. However CVRR supplies over 70% of their current pet coke feed stock. This article ought to allay your fears on the supply arrangement. Pet Coke supply contract with CVR is till 2027. UAN was down on issues with operational downtime as well as ammonia and urea fertilizer prizes headed south. Rentech Nitrogen Partners LP cut dividends due to ammonia sulfate issues which has little to do with UAN. Financially, UAN has high capex requirements which I am sure is bound to continue with their outlined expansion plans to increase production and storage capacities by some 50%. See FY 2012 where they had $133m OCF but over $80m capex alone. 2011 and 2010 had FCF c. $120m and $65m respectively. For a LP worth some $1.2B, not cheap enough for me but if it works for you ... Also, its not potash they are in. UAN deals with nitrogen based fertilizers. On the other hand, you may be right on the Potash cartel. rt.com

To: LTBH who wrote (52829)	12/5/2013 9:01:07 PM
From: E_K_S	Read Replies (1) \| Respond to of 78650

US Exports to China Increasing Barrels of Petcoke, a Fuel Dirtier Than Coal According to the U.S. Energy Information Administration, China imported just under 2 million barrels of petcoke from the US in 2008. By 2012, that figure had jumped to 26 million barrels. In the first nine months of 2013, China imported 28.5 million barrels of petcoke from the US – up more than 50 percent from the same period last year. U.S. production of Pet-Coke is growing and UAN solves this problem. Their technology is unique and I am not too sure they can easily duplicate it as they originaly obtained their faculty from CVX but have made improvements. It seems to me, it's cheaper to use this waste stream locally rather than ship it to the other side of the world to China. However, that appears to be what we are currently doing. EKS