CVR Partners disclosed a preliminary 2026 capital‑spending plan that will total between $60 million and $75 million. The plan allocates $35 million to $45 million for maintenance capital and $25 million to $30 million for growth capital, with the goal of keeping the company’s Coffeyville, Kansas, and East Dubuque, Illinois, plants operating at utilization rates above 95 percent of nameplate capacity.
Growth projects focus on expanding ammonia production and diversifying feedstock at Coffeyville, upgrading water‑quality systems at both facilities, and increasing diesel exhaust fluid (DEF) production and loadout capacity. These initiatives are designed to improve reliability, boost production capacity, and support the company’s margin profile in a market where natural‑gas prices remain a key cost driver.
The decision to increase capex reflects a strategic response to rising commodity costs and competitive pressure. By investing in feedstock diversification and water‑quality upgrades, CVR Partners aims to reduce operating‑cost volatility and maintain pricing power, while the DEF expansion positions the company to capture growing demand for emission‑control solutions.
Compared with the previous year, the 2026 plan represents a modest increase over the $50 million to $60 million capex guidance issued for 2025. In 2025, the company earmarked $20 million to $25 million for Q3 upgrades and maintenance, and reported a full‑year capex of $58 million to $65 million. The incremental spend in 2026 signals confidence in a near‑term demand cycle for nitrogen fertilizers.
Mark Pytosh, CEO, said the projects will “improve reliability and production rates, supporting our target of operating above 95 percent utilization.” He added that the capital plan is part of a broader effort to sustain a strong margin profile while positioning the company for future demand cycles.
By balancing maintenance and growth investments, CVR Partners is reinforcing its competitive moat in the nitrogen‑fertilizer market. The plan’s focus on operational efficiency and capacity expansion is expected to translate into higher output, lower per‑unit costs, and continued resilience against commodity‑price swings.
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