The Partnership expects ammonia production for the East Dubuque Facility in early 2014 to be restricted to 790 tons per day, compared to the 1,100 tons per day expected before the discovery of the requirement for compressor-related repair. Otherwise, the East Dubuque Facility is expected to operate at its expanded production rates during the rest of 2014. The Pasadena Facility’s margins are expected to improve in 2014. The benefits of lower input costs, already visible in the market, should start to be realized in early 2014. Third-party forecasters show modest improvements in prices for ammonium sulfate in 2014, as well as lower prices for the key inputs, leading the Partnership to expect improved margins and positive EBITDA for the Pasadena Facility in 2014.
Changes in Timing of Cash Distributions: The Partnership plans to change the timing of the payment of its cash distributions, so that cash distributions will generally be announced at the same time as quarterly results. The Board of Directors of Rentech Nitrogen Partners has approved a change, so that quarterly distributions will be paid on or about 60 days after the end of each quarter, rather than the current practice of 45 days. The result is that quarterly operating results and cash distributions can be announced simultaneously for the first through third quarters. For the fourth quarter, distributions may be announced before full operating results, due to the longer time required to report annual operating results. The cash distribution for the fourth quarter of 2013 is expected to be announced in February 2014, and paid on or about 60 days following the end of the quarter.
About Rentech Nitrogen, L.P.Rentech Nitrogen ( www.rentechnitrogen.com) was formed by Rentech, Inc. to own, operate and expand its nitrogen fertilizer business. Rentech Nitrogen’s assets consist of two fertilizer production facilities owned by its operating subsidiaries. The East Dubuque Facility is located in the northwestern corner of Illinois, and uses natural gas as a feedstock to produce primarily anhydrous ammonia and UAN solution for sale to customers in the Mid Corn Belt. The Pasadena Facility is located in Pasadena, Texas, along the Houston Ship Channel, and uses ammonia and sulfur as feedstocks to produce ammonium sulfate and ammonium thiosulfate fertilizers, and sulfuric acid. Rentech Nitrogen is the largest producer of synthetic granulated ammonium sulfate fertilizer in North America, with sales in the United States and internationally.
Forward-Looking StatementsThis press release contains forward-looking statements about matters such as: forecasted trends in product demand, product deliveries, raw material costs and finished goods selling prices, and forecasted margins and EBITDA for the Pasadena Facility; forecasted results and production rates for the East Dubuque Facility; projected cash distributions by the Partnership for the fourth quarter of 2013; the timing, budget and expected operational results for our expansion and turnaround projects; and the timing, cost and financial impact of repairs to the compressor foundation at our East Dubuque Facility. These statements are based on management’s current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements are set forth in Rentech Nitrogen’s prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech Nitrogen’s website at
www.rentechnitrogen.com. The forward-looking statements in this press release are made as of the date of this press release and Rentech Nitrogen does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.
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