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Rentech Nitrogen Revises Guidance

Stocks in this article: RNF

Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells nitrogen fertilizer products including ammonia, urea ammonium nitrate solution (UAN) and ammonium sulfate (AS), today provided an update on its previously issued guidance.

Rentech Nitrogen now expects full-year 2012 consolidated EBITDA to be approximately $123 million as a result of $5.1 million in costs and lost operating income due to unscheduled maintenance downtime at its production facilities and $6.5 million of transaction costs and other items related to the recent acquisition of Agrifos LLC. Adjusted for the acquisition-related items, consolidated 2012 EBITDA for Rentech Nitrogen would be approximately $130 million. The Partnership had previously projected consolidated EBITDA to be in excess of $130 million for the twelve months ending December 31, 2012, as stated in its press release dated November 8, 2012.

Rentech Nitrogen also revised its expectation of cash available for distribution for the twelve months ending December 31, 2012, to approximately $3.27 per unit, as a result of the recent outages. The acquisition-related items are not expected to reduce cash available for distribution. The Partnership previously projected cash available for distribution to be in excess of $3.30 per unit for that period, as stated in its press release dated November 8, 2012.

Further explanation of EBITDA and Adjusted EBITDA, non-GAAP financial measures, a reconciliation of consolidated forecasted EBITDA and Adjusted EBITDA to net income, and an updated calculation of forecasted cash available for distribution have been included below in this press release.

In early December, the East Dubuque facility experienced a plant outage of approximately 15 days caused by a tube failure in a waste heat boiler in the ammonia plant at the facility. The boiler has since been repaired through a full replacement of the boiler tubes. In addition, the Partnership plans to replace the current boiler tube bundle with a larger bundle in its upcoming fall 2013 turnaround as part of the Partnership’s ongoing project to increase ammonia production and efficiency at its East Dubuque facility. The ammonia plant is currently operating at full capacity. The downtime is expected to reduce operating income from the East Dubuque facility by approximately $10 million, approximately $2.2 million of which is expected to impact the Partnership’s 2012 financial results. The remaining approximately $7.8 million is expected to be realized in 2013. The Partnership now expects 2012 EBITDA for the East Dubuque facility to be approximately $128.5 million, after taking into account the plant outage.

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