The calculation of forecasted cash available for distribution has been included below in this press release.
Rentech Nitrogen expects 2013 to benefit from market dynamics similar to those of 2012. The impact of the drought on ending corn stocks will likely result in continued high prices and significant acres planted next year. Low corn inventories should drive corn pricing throughout the year and support strong fertilizer demand. Rentech Nitrogen has started to sell ammonia for spring 2013 delivery at a price that exceeds the average price of $730 per ton that was achieved during the spring of this year.
Second Quarter Cash Distribution
On July 26, 2012, Rentech Nitrogen declared a cash distribution of $1.17 per unit, payable on August 14, 2012 to unit holders of record as of August 7. This will be the second cash distribution paid by Rentech Nitrogen since its initial public offering in November 2011, and will result in cumulative cash distributions of $2.23 per common unit. Of that amount, $1.70 per common unit relates to cash distributions for the six months ending June 30, 2012. The calculation of cash available for distribution has been included below in this press release.
Urea Expansion and Diesel Exhaust Fluid Build-Out (DEF)
As previously announced, the partnership has completed the DEF portion of its urea/DEF expansion project ahead of schedule. The completed work included the installation of mixing, storage and load-out equipment for DEF production. The second phase of the project, to increase urea production capacity by an expected 13% or 17,500 tons annually, for use in DEF production, is on schedule for mechanical completion by the end of this year. The total capital budget for the urea/DEF project remains approximately $6 million and is fully-funded.