Rentech Nitrogen expects 2013 to benefit from strong nitrogen market dynamics. The Partnership expects 2013 planted corn acres to exceed 96 million. With drought conditions moderating, Rentech Nitrogen anticipates yields in the range of 155 – 160 bushels per acre and a multi-year recovery of corn inventories from last year’s drought. For these reasons, the Partnership expects corn prices to remain strong, incentivizing farmers to plant corn and apply nitrogen to maximize yields and profits. With farm income remaining very strong and fertilizer costs as a percentage of corn revenues at historical lows, farmers are well positioned to purchase nitrogen.
Rentech Nitrogen expects 2013 cash available for distribution to be approximately $101 million, or $2.60 per unit. The 2013 guidance includes the impact of two scheduled outages at its facilities during the year, as described below. Excluding the effects of these outages and approximately $6.0 million in lost profits in 2013 due to the unscheduled December 2012 outage at the East Dubuque Facility, 2013 consolidated cash available for distribution would have been approximately $0.65 per unit higher. The calculation of forecasted cash available for distribution has been included below in this press release.
Rentech Nitrogen expects 2013 EBITDA to be approximately $129 million. Excluding Partnership level expenses, 2013 EBITDA for the East Dubuque Facility and Pasadena Facility are expected to be $114 million and $24 million, respectively. The Partnership’s 2013 EBITDA guidance for the Pasadena Facility is consistent with the guidance previously provided at the time of the acquisition in late 2012. The calculation of forecasted EBITDA, a non-GAAP financial measure, and a reconciliation of EBITDA to net income have been included below in this press release.Assuming product and input prices equal to those expected in 2013, Rentech Nitrogen noted that the annual incremental contribution from increased production from its expansion projects scheduled to come online by the end of 2013 would be expected to add approximately $0.90 per unit of cash distributions and approximately $41 million of EBITDA.