Chris Damas
Contrarian, newsletter provider, commodities, industrials

CVR Partners Forecast Update

I've been asked by several readers to update my forecast for nitrogen fertilizer MLP, CVR Partners, L.P. (NYSE:UAN). So here it is.

We are mildly bullish short-term (next few months). Longer-term, that being two to three years, we think CVR Partners will face increased competition from large domestic nitrogen fertilizer expansions planned by CF Industries Holdings (NYSE:CF), and upstarts such as Iowa Fertilizer Company, the latter owned by Orascom N.V. (OTCQX:OCINY) and even Northern Plains Nitrogen, a farmer co-op led iniitiatve in North Dakota.

Back in August I wrote CVR Partners was seeing a soft second half and had experienced problems which reduced ammonia production. I predicted the units would decline, estimating fair value...

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