2012 Outlook

Rentech Nitrogen increased guidance for the twelve months ending December 31, 2012, stating that it expects cash available for distribution to be in excess of $126 million or $3.30 per unit, and EBITDA to be in excess of $130 million. This compares to the previous guidance of EBITDA in the range of $120 million and cash available for distribution in the range of $109 million, or $2.86 per unit. The partnership provided the following additional key operating metrics and its progress against its guidance:
       

Guidance for 2012
      Locked-in or Delivered

(as of 6/30/12)
Ammonia

 
Tons

143,000

111,000 or 78%
Average Price ($/ton)

$659
 
UAN

 
Tons

293,000

291,000 or 99%
Average Price ($/ton)

$326

 
Natural Gas in Cost of Sales

10.6

7.1 or 67%
(million MMBtus)

 

 
Average Cost per MMBtu

$3.64
(includes transportation costs)

 
 

In addition to natural gas purchases through June 30, detailed above, as of July 31, 2012, Rentech Nitrogen had contracted at fixed prices for an additional 1.8 million MMBtus at an average price of $3.28 per MMBtu, excluding transportation costs. With the addition of these natural gas commitments, Rentech Nitrogen has locked in 84% of the natural gas required to produce products already delivered or forecasted to be delivered under the new 2012 guidance at an average cost of $3.71 per MMBtu, including transportation costs. These forward natural gas contracts represent approximately 100% of the natural gas required to produce products to be delivered under 2012 pre-paid sales contracts as of July 31.

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