Rentech Nitrogen Partners, L.P. Announces Results for Fourth Quarter and Full Year 2013

  Rentech Nitrogen Partners, L.P. Announces Results for Fourth Quarter and
  Full Year 2013

                 Expansion and Reliability Projects Completed

       Lower Nitrogen Prices and Downtime Reduce Profits and Cash Flow

Business Wire

LOS ANGELES -- March 11, 2014

Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells
nitrogen fertilizer products including ammonia, urea ammonium nitrate (UAN)
solution and ammonium sulfate (AS), today announced its financial and
operating results for the three and twelve months ended December 31, 2013.

“2013 was a challenging year. The spring season was delayed, and we saw
substantial industry-wide declines in nitrogen prices. Both of our facilities
were down for much of the fourth quarter, due to scheduled projects and
unscheduled repairs and maintenance, which reduced production and sales
volumes,” said D. Hunt Ramsbottom, CEO of Rentech Nitrogen. “As we enter 2014,
both facilities are operating exceptionally well, and we expect normal
on-stream factors this year. We completed our expansion, improvement and
repair projects, so both plants are producing at significantly higher rates
than last year. In addition, we continue to see higher prices for nitrogen
products compared to the lows we witnessed during the second half of last
year, and we remain encouraged that we will deliver improved financial and
operating results in 2014.”

Financial Highlights

The Partnership’s results for 2013 were heavily affected by significant
unanticipated declines in nitrogen fertilizer prices, which ended the year 20%
to 30% below the price levels at the beginning of the year. Unusually high
volumes of low-priced urea exports from China drove down global prices of
nitrogen products, and a very wet spring application period throughout the
U.S. markets delayed and reduced demand for nitrogen products.

Three months ended December 31, 2013

The financial results for the three months ended December 31, 2013 and 2012
include three months of operating results for the Pasadena, Texas facility
(the Pasadena Facility) in 2013 and two months in 2012.

Revenues for the three months ended December 31, 2013 were $54.6 million,
compared to $92.4 million for the comparable period in the prior year.
Revenues for the fourth quarter of 2013 declined 44% year-over-year at the
East Dubuque, Illinois facility (the East Dubuque Facility) and by 37% at the
Pasadena Facility, due to industry-wide declines in nitrogen product prices,
plant outages and lower production and sales volumes.

Production was reduced at both facilities during the quarter due to scheduled
and unscheduled downtime, which totaled 60 days at the East Dubuque Facility
and 37 days at the Pasadena Facility. The East Dubuque Facility was out of
commission for 31 days during the quarter for work related to the bi-annual
turnaround. Production at the East Dubuque Facility was also halted for 29
days in late November and much of December to accommodate repairs following a
fire at the ammonia converter. Additionally, the East Dubuque Facility
operated at reduced rates for 45 days, 27 of which were during the quarter
following the turnaround, as a result of the need to replace the foundation
underneath one of four syngas compressors, rendering the compressor out of
service. The replacement of the compressor foundation took 84 days to
complete, most of which occurred while the plant was down due to the fire. The
Pasadena Facility experienced several small, unplanned disruptions during the
quarter, and also was offline for 23 days in December to conduct the scheduled
ammonium sulfate expansion and reliability improvement project as well as
other turnaround maintenance.

Limited production volume reduced deliveries of UAN from the East Dubuque
Facility in the fourth quarter of 2013, resulting in the postponement of
19,000 tons of scheduled UAN deliveries until the first quarter of 2014.
Ammonia demand for the quarter was limited due to an abbreviated fall
application period as a result of wet weather. Sales volume at the Pasadena
Facility was reduced by the delay into the first quarter of 2014 of a 27,000
metric ton vessel shipment of ammonium sulfate, caused by the late arrival of
the vessel.

Gross loss margin was 15% for the three months ended December 31, 2013,
compared to gross profit margin of 31% for the same period last year. Lower
product prices and higher fixed costs per ton in cost of sales reduced margins
for both facilities, as fixed production costs, including those incurred
during the downtime that would normally be included in product inventory costs
but were expensed as cost of sales, were spread across lower sales volumes.
Gross loss margin at the East Dubuque Facility was 2% for the current period,
compared to gross profit margin of 55% for the prior-year period, partially
due to lower sales prices, higher natural gas prices and repair costs. Gross
loss margin at the Pasadena Facility was 32% for the current period, compared
to 5% for the prior-year period, due primarily to lower product pricing
relative to the cost of inputs, and a write-down of inventories. Downtime in
the fourth quarter lowered nitrogen production by an aggregate of
approximately 191,000 tons at both facilities and increased per-ton costs, as
fixed production costs, including those incurred during the downtime that
would normally be included in product inventory costs but were expensed as
cost of sales, were spread across lower sales volumes. Scheduled and
unscheduled downtime at both facilities resulted in turnaround and related
costs of $15.5 million reflected in cost of sales. Natural gas costs were 37%
of the East Dubuque Facility’s cost of sales, while ammonia and sulfur costs
were 57% of the Pasadena Facility’s cost of sales.

Selling, general and administrative (SG&A) expenses were $3.6 million for the
three months ended December 31, 2013, compared to $6.4 million for the
prior-year period. The reduction in SG&A expenses was primarily the result of
a $2.2 million reduction in business development expenses and unit based
compensation at the Partnership level, and lower payroll expenses at the East
Dubuque Facility.

During the three months ended December 31, 2013, operating loss was $13.6
million, compared to operating income of $21.3 million during the comparable
period in the prior year. The operating loss in the quarter was primarily due
to costs associated with scheduled and unscheduled downtime at both
facilities, lower sales volume resulting from reduced production and limited
demand during the shortened fall application season, as well as lower sales
prices.

Adjusted EBITDA for the three months ended December 31, 2013 was ($8.6)
million, or $6.9 million excluding costs related to planned and unplanned
outages, which compares to $24.3 million in the corresponding period in 2012.
The East Dubuque Facility reported $0.3 million in Adjusted EBITDA, or $14.1
million excluding costs related to planned and unplanned outages. The Pasadena
Facility reported ($7.5) million in Adjusted EBITDA, or ($5.8) million
excluding costs related to planned and unplanned outages. Further explanation
of Adjusted EBITDA, a non-GAAP financial measure, has been included below in
this press release.

Interest expense was $4.4 million for the three months ended December 31,
2013, compared to $1.3 million for the prior-year period. The increase was due
to additional borrowings to finance expansions, major maintenance projects,
and the acquisition of the Pasadena Facility.

Net loss was $17.4 million, or ($0.45) per basic unit, for the current period
compared to net income of $17.6 million, or $0.44 per basic unit, for the same
period last year.

Year ended December 31, 2013

The financial results for the year ended December 31, 2013 and 2012 include
twelve months of operating results for the Pasadena Facility in 2013 and two
months in 2012.

Revenues for the year ended December 31, 2013 were $311.4 million, compared to
$261.6 million for the prior year. Revenues increased due to the inclusion of
the Pasadena Facility’s results for the full twelve months of 2013 in
comparison to two months of results for 2012, partially offset by a 21%
decline in revenues from the East Dubuque Facility as the result of declines
in nitrogen prices and lower production and sales volumes.

Gross profit margin for the year ended December 31, 2013 was 23%, compared to
50% for the same period last year. Gross profit margin at the East Dubuque
Facility was 46% for the current period, compared to 60% for the prior-year
period. Gross loss margin at the Pasadena Facility was 7% for the current
period, compared to 5% for the prior-year period. Gross margin at both
facilities was reduced by downtime, which reduced production and sales volumes
and increased costs in the fourth quarter of 2013. In addition, gross margin
for both facilities was reduced by lower nitrogen product prices, higher input
costs and allocation of fixed production costs, including those incurred
during downtime that would normally be included in product inventory costs,
which were expensed as cost of sales, and were spread across lower sales
volume. Gross loss margin at the Pasadena Facility was further reduced by
approximately $5.0 million in inventory write-downs of product that had not
been delivered and remained in inventory at the end of the year.

SG&A expenses were $17.3 million for the year ended December 31, 2013, down
from $18.4 million in the prior-year period. The decrease was primarily due to
a decline of $3.5 million in Partnership level business development expenses
and a $1.7 million decline in unused credit facility fees and professional
service expenses. These declines were partially offset by the inclusion of the
Pasadena Facility’s SG&A for the full twelve months of 2013 compared to two
months of 2012.

During the year ended December 31, 2013, operating income was $19.2 million
compared to $111.6 million during the comparable period in the prior year. The
year-over-year decline in operating income was a result of lower gross profits
at the East Dubuque Facility due to lower sales volumes and product prices of
ammonia and UAN and a result of negative gross profits at the Pasadena
Facility. In addition, operating income in 2013 was reduced by a $30.0 million
non-cash charge for impairment of goodwill related to the Pasadena Facility.
The impairment was the result of a reduced outlook for profitability at the
Pasadena Facility compared to projections at the time of the acquisition.

Adjusted EBITDA for the twelve months ended December 31, 2013 was $66.5
million, or $82.0 million excluding costs related to planned and unplanned
outages, which compares to $124.0 million in the corresponding period in 2012.
The East Dubuque Facility reported $84.5 million in Adjusted EBITDA, or $98.4
million excluding costs related to planned and unplanned outages. The Pasadena
Facility reported ($10.1) million in Adjusted EBITDA, or ($8.4) million
excluding costs related to planned and unplanned outages. Further explanation
of Adjusted EBITDA, a non-GAAP financial measure, has been included below in
this press release.

Interest expense was $14.1 million for the year ended December 31, 2013,
compared to $1.5 million for the prior-year. The increase was due to
additional borrowings to finance expansions, major maintenance projects, and
the acquisition of the Pasadena Facility.

Rentech Nitrogen realized a non-cash gain of $4.9 million for the year ended
December 31, 2013 as a result of a decrease in the potential earn-out
consideration related to the acquisition of the Pasadena Facility. The
reduction was caused by a decline since the time of the acquisition in the
outlook for profitability in 2013 and 2014, primarily due to lower levels of
nitrogen fertilizer prices.

Net income was $4.1 million, or $0.10 per basic unit, for the current period.
Excluding the Agrifos goodwill impairment of $30.0 million, loss on debt
extinguishment of $6.0 million and fair value adjustment to earn-out
consideration of $4.9 million, net income allocated to common unit holders for
the current period was $34.8 million or $0.89 per basic unit. This compares to
net income of $107.0 million or $2.78 per basic unit for the same period last
year. Further explanation of net income excluding these items, a non-GAAP
financial measure, has been included below in this press release.

2014 Outlook

Full year guidance

The Partnership expects that a number of factors may contribute to improved
operating and financial results in 2014 compared to 2013. Completed capacity
expansion projects have increased production rates, and should increase
production for the year at both facilities. Projects to improve reliability
have been completed at the Pasadena Facility. Both facilities are forecasted
to operate at increased capacity in 2014, with no scheduled down-time for the
East Dubuque Facility and no scheduled interruptions to the production of AS,
other than normal scheduled maintenance for the Pasadena Facility. The
sulfuric acid plant is scheduled to be down for approximately 20 days
beginning in mid-July to install a new converter and to complete final tie-ins
for the co-generation power project. AS production should not be impacted
during this period as we plan to purchase sulfuric acid in the open market.
The Partnership currently expects positive EBITDA at the Pasadena Facility for
the year due to increased production, improved margins and higher operating
rates.

Recent increases in prices for nitrogen products from the lower levels
experienced late in 2013 are encouraging. However, the current market
environment is different this year relative to early 2013, with lower corn
prices and somewhat lower, albeit strong, anticipated corn plantings. These
factors and the dynamics that affect input prices could rapidly change based
on weather patterns and other conditions, and could positively or negatively
affect product prices, margins, deliveries and cash distributions. Cash
distributions in 2014 may be less than cash available for distribution if the
Board of Directors elects to reduce distributions in order to replenish
working capital reserves that were diminished by $20 million of negative cash
available for distribution in the fourth quarter of 2013.

Rentech Nitrogen updated its previously provided guidance for production,
deliveries, and raw materials consumption in 2014:

Production (in thousand tons)             2014E
East Dubuque Facility
Ammonia                                       360
UAN                                           315
Urea (liquid and granular)                    190
Nitric acid                                   125
Ammonium nitrate                              140
CO[2]                                         80
                                              
Pasadena Facility
Ammonium sulfate                              660
Sulfuric acid                                 555
Ammonium thiosulfate                          60
                                              
Deliveries (in thousand tons)                 2014E
East Dubuque Facility
Ammonia                                       190
UAN                                           315
Urea (liquid and granular)                    55
Nitric acid                                   15
CO[2]                                         80
                                              
Pasadena Facility
Ammonium sulfate                              670
Sulfuric acid                                 100
Ammonium thiosulfate                          60
                                              
Consumption (Volume in Cost of Sales)         2014E
Ammonia (in thousand tons)                    175
Natural gas (in million MMBtus)               11.8
Sulfur (in thousand tons)                     210
Sulfuric acid (in thousand tons)              605
                                              
                                              

The Partnership provided the following additional key operating metrics,
progress against its forecasted product deliveries, and consumption of inputs
for 2014 for the East Dubuque and Pasadena Facilities:

                                     Locked-in or Delivered
East Dubuque Facility
                                         
Deliveries^1
Ammonia
Tons                                     62,000 or 33%
Average price                            $520
UAN                                      
Tons                                     93,000 or 30%
Average price                            $280
                                         
Natural gas in cost of sales^1           
(million MMBtus)                         3.6 or 30%
Average cost per million MMBtus
(including transportation costs)         $4.96
                                         
Pasadena Facility
                                         
Deliveries and Commitments^1
Ammonium sulfate
Tons                                     168,000 or 25%
Average price^2                          $198

^1  Through February 28, 2014.
     Transportation costs for approximately 97,000 tons have not been
^2   established. Average pricing realized on remaining tons could vary by a
     few dollars, depending on transportation costs.
     
     

First quarter 2014 guidance

Rentech Nitrogen expects product deliveries for the first quarter of 2014 to
be seasonally low, especially in light of the currently cold weather in its
trade zone. In addition, product margins at the Pasadena Facility are expected
to be low during the first quarter as the majority of ammonium sulfate tons
anticipated to be sold in the quarter was produced last year and marked to
market at the end of 2013 based on committed or expected sales prices. As a
result, these tons will be sold at or near break-even gross margins in the
first quarter. The Partnership expects consolidated results for the second
quarter of 2014 to improve substantially from anticipated first quarter
results due to higher seasonal demand and improved product margins.

Rentech Nitrogen provided the following guidance for the first quarter of
2014, assuming a typical spring planting season and weather patterns. The
Partnership’s quarterly results are variable with strong seasonality.
Annualized quarterly results or forecasts may not be accurate indicators of
annual results.

First Quarter 2014 Forecasted Deliveries               
(in thousand tons)                                         First Quarter 2014E
East Dubuque
Ammonia                                                    7
UAN                                                        51
Urea - liquid and granular                                 12
Nitric acid                                                3
Pasadena
Ammonium sulfate                                           128
Sulfuric acid                                              28
Ammonium thiosulfate                                       11
                                                           
First Quarter 2014 Forecasted Consumption in
Deliveries
East Dubuque
Natural gas (in million MMBtus)                            1.3
Pasadena (in thousand tons)
Ammonia                                                    34
Sulfur                                                     43
                                                           
                                                           

Fourth Quarter Cash Distribution

On February 13, 2014, Rentech Nitrogen announced a cash distribution for the
fourth quarter of 2013 of $0.05 per unit. The distribution was paid on
February 28, 2014 to unitholders of record as of February 24, 2014. The
calculation of cash available for distribution is included below.

Conference Call with Management

Rentech Nitrogen will hold a conference call today, March 11, 2014 at 1:30
p.m. PDT, during which senior management will review the Partnership’s
financial results for this period and provide an update on the business.
During the call, management will refer to a presentation that will be posted
shortly before the call within the Investor Relations portion of the website
under the Presentation section. Callers may listen to the live presentation,
which will be followed by a question and answer segment, by dialing
800-774-6070 or 630-691-2753 and the pass code 6179090#. An audio webcast of
the call will be available at www.rentechnitrogen.com within the Investor
Relations portion of the site under the Presentations section. A replay will
be available by audio webcast and teleconference from 4:00 p.m. PDT on March
11 through 11:59 p.m. PDT on March 21. The replay teleconference will be
available by dialing 888-843-7419 or 630-652-3042 and the audience passcode
6179090#.


Rentech Nitrogen Partners, L.P.
Consolidated Statements of Operations
(Amounts in Thousands, Except per Unit Data)

                     For the Three Months          For the Year
                         Ended December 31,             Ended December 31,
                         2013          2012            2013          2012
                         (unaudited)     (unaudited)
Revenues                 $ 54,576        $  92,407       $ 311,375       $ 261,635
Cost of Sales             62,609         63,821       240,021       129,796 
Gross Profit               (8,033  )        28,586         71,354          131,839
(Loss)
Operating
Expenses
Selling, general
and                        3,563            6,394          17,285          18,376
administrative
expense
Depreciation and           1,203            665            4,077           1,390
amortization
Agrifos goodwill           -                -              30,029          -
impairment
Other                     770            225          806           510     
Total Operating           5,536          7,284        52,197        20,276  
Expenses
Operating Income           (13,569 )        21,302         19,157          111,563
(Loss)
                                                                         
Other Income
(Expense), Net
Interest expense           (4,373  )        (1,289 )       (14,098 )       (1,469  )
Loss on debt               -                (2,114 )       (6,001  )       (2,114  )
extinguishment
                                                                                   
Fair value
adjustment to              -                -              4,920           -
earn-out
consideration
Other expenses,           1              (42    )      (6      )      (674    )
net
Total Other               (4,372  )       (3,445 )      (15,185 )      (4,257  )
Expenses, Net
Income (Loss)
Before Income              (17,941 )        17,857         3,972           107,306
Taxes
                                                                         
Income tax
(benefit)                 (534    )       303          (96     )      303     
expense
Net Income               $ (17,407 )     $  17,554      $ 4,068        $ 107,003 
(Loss)
                                                                         
Basic Net Income
(Loss) per
Common Unit              $ (0.45   )     $  0.44        $ 0.10         $ 2.78    
Allocated to
Common Unit
Holders
Diluted Net
Income (Loss)
per Common Unit          $ (0.45   )     $  0.44        $ 0.10         $ 2.78    
Allocated to
Common Unit
Holders
                                                                         
Weighted-Average
Units Used to
Compute Net
Income (Loss)
per Common Unit:
Basic                     38,869         38,634       38,850        38,350  
Diluted                   38,923         38,651       38,945        38,352  
                                                                                   
                                                                                   

                           For the Three Months    For the Year
                               Ended December 31,        Ended December 31,
                               2013       2012         2013       2012
Production Tons (in
thousands)
East Dubuque Facility:
Ammonia                          17           62           244          293
                                                                             
Ammonia Available for
Sale (included in line           4            31           106          142
above)
UAN                              26           63           262          301
Other Products                   27           57           265          284
(excludes CO[2])
Pasadena Facility:
Ammonium Sulfate                 91           88           465          88
Sulfuric Acid                    111          69           478          69
Ammonium Thiosulfate             17           9            60           9
Delivered Tons (in
thousands)
East Dubuque Facility:
Ammonia                          27           48           103          149
UAN                              32           55           269          291
Other Products                   8            9            57           49
(excludes CO[2])
Pasadena Facility:
Ammonium Sulfate                 98           115          428          115
Sulfuric Acid                    29           27           148          27
Ammonium Thiosulfate             13           -            54           -
                                                                      
Average Price per
Delivered Ton
East Dubuque Facility:
Ammonia                        $ 582        $ 676        $ 650        $ 669
UAN                            $ 264        $ 301        $ 295        $ 326
Pasadena Facility:
Ammonium Sulfate               $ 190        $ 300        $ 251        $ 300
Sulfuric Acid                  $ 78         $ 94         $ 91         $ 94
Ammonium Thiosulfate           $ 185        $ -          $ 188        $ -
                                                                      
Input Costs
East Dubuque Facility:
Natural Gas
                                                                      
Natural Gas Used in
Production (Million              0.7          2.2          8.9          10.6
MMBtus)
Average Natural Gas
Cost per MMBtu,                $ 4.35       $ 3.72       $ 4.18       $ 3.55
including
transportation cost
                                                                      
Natural Gas Cost in
Cost of Sales (Million           2.8          2.7          10.1         11.1
MMBtus)
Average Natural Gas
Cost per MMBtu,                $ 4.19       $ 3.44       $ 4.16       $ 3.59
including
transportation cost
                                                                      
Input Costs
Pasadena Facility:
Ammonia
Ammonia Used in
Production (Thousand             26           23           126          23
Tons)
Ammonia in Cost of               26           23           115          23
Sales (Thousand Tons)
Sulfur
Sulfur Used in
Production (Thousand             41           47           173          47
Tons)
Sulfur in Cost of                38           25           169          25
Sales (Thousand Tons)
On-Stream Rates^1:
East Dubuque Facility:
Ammonia                          34.8 %       81.5 %       83.6 %       95.4 %
UAN                              39.1 %       80.4 %       84.1 %       95.1 %
Pasadena Facility:
Ammonium Sulfate                 59.6 %       88.0 %       76.2 %       88.0 %
Sulfuric Acid                    77.8 %       63.2 %       87.5 %       63.2 %

     The on-stream factors for the ammonia, UAN, ammonium sulfate and sulfuric
^1  acid plants equal the total days the applicable plant operated in any
     given period, divided by the total days in that period.
     
     

Rentech Nitrogen Partners, L.P.
Statements of Operations by Business Segment
(Stated in Thousands)

                   For the Three Months          For the Year
                       Ended December 31,              Ended December 31,
                       2013          2012            2013          2012
                       (unaudited)     (unaudited)
Revenues
East Dubuque           $ 30,862        $  54,977       $ 177,700       $ 224,205
Pasadena                23,714         37,430       133,675       37,430  
Total Revenues         $ 54,576       $  92,407      $ 311,375      $ 261,635 
                                                                       
Gross Profit
(Loss)
East Dubuque           $ (470    )     $  30,290       $ 80,883        $ 133,543
Pasadena                (7,563  )       (1,704 )      (9,529  )      (1,704  )
Total Gross            $ (8,033  )     $  28,586      $ 71,354       $ 131,839 
Profit (Loss)
                                                                       
Selling,
General and
Administrative
Expense
East Dubuque           $ 1,153         $  1,762        $ 4,576         $ 6,242
Pasadena                953            361          4,764         361     
Total Selling,
General and            $ 2,106        $  2,123       $ 9,340        $ 6,603   
Administrative
Expense
                                                                       
Depreciation
and
Amortization
East Dubuque           $ 39            $  81           $ 191           $ 807
Pasadena                1,164          583          3,886         583     
Total
Depreciation
and
Amortization           $ 1,203        $  664         $ 4,077        $ 1,390   
Recorded in
Operating
Expenses
                                                                       
Other
Operating
Expenses
East Dubuque           $ 770           $  226          $ 806           $ 510
Pasadena                -              -            30,029        -       
Total Other
Operating              $ 770          $  226         $ 30,835       $ 510     
Expenses
                                                                       
Operating
Income (Loss)
East Dubuque           $ (2,432  )     $  28,221       $ 75,310        $ 125,984
Pasadena                (9,680  )       (2,648 )      (48,208 )      (2,648  )
Total
Operating              $ (12,112 )     $  25,573      $ 27,102       $ 123,336 
Income (Loss)
                                                                       
Interest
Expense
East Dubuque           $ -             $  13           $ -             $ 194
Pasadena                2              -            8             -       
Total Interest         $ 2            $  13          $ 8            $ 194     
Expense
                                                                       
Net Income
(Loss)
East Dubuque           $ (2,139  )     $  26,095       $ 75,244        $ 123,721
Pasadena                (9,442  )       (2,648 )      (48,357 )      (2,648  )
Total Net              $ (11,581 )     $  23,447      $ 26,887       $ 121,073 
Income (Loss)
                                                                       
Reconciliation
of Segment Net
Income (Loss)
to
Consolidated
Net Income
(Loss)
Segment net            $ (11,581 )     $  23,447       $ 26,887        $ 121,073
income (loss)
Partnership
and
unallocated
expenses
recorded as              (1,457  )        (4,271 )       (7,945  )       (11,773 )
selling,
general and
administrative
expenses
Partnership
and
unallocated
income                   -                -              (1,081  )       232
(expenses)
recorded as
other income
(expense)
Unallocated
interest
expense and              (4,370  )        (1,319 )       (14,096 )       (2,226  )
loss on
interest rate
swaps
Income tax
benefit                 1              (303   )      303           (303    )
(expense)
Consolidated
Net Income             $ (17,407 )     $  17,554      $ 4,068        $ 107,003 
(Loss)
                                                                                 
                                                                                 

Rentech Nitrogen Partners
Selected Balance Sheet Data

                               As of                 As of
Consolidated Balance Sheet         December 31, 2013         December 31, 2012
Data
Cash                               $     34,060              $     55,799
Working Capital                          21,188                    23,218
Construction in Progress                 33,531                    61,147
Total Assets                             406,344                   376,645
Total Debt                               320,000                   193,290
Total Partners' Capital                  23,125                    109,404
                                                                   

Disclosure Regarding Non-GAAP Financial Measures

Net income (loss) excluding Agrifos goodwill impairment, loss on debt
extinguishment, and fair value adjustment to earn-out consideration is
included to provide management and investors with net income (loss) results
for Rentech Nitrogen that are more easily compared to the prior year period.

Adjusted EBITDA is defined as net income (loss) plus interest expense and
other financing costs, Agrifos goodwill impairment, loss on debt
extinguishment, loss on interest rate swaps, income tax (benefit) expense,
depreciation and amortization and fair value adjustment to earn-out
consideration. Pro-Forma Adjusted EBITDA is Adjusted EBITDA plus turnaround
expenses, the cost to replace the foundation underneath one of our syngas
compressors, the insurance deductible on equipment damaged by the fire that
occurred in November 2013 and fixed costs incurred during downtime for repairs
related to the fire. We calculate cash available for distribution as Adjusted
EBITDA plus non-cash compensation expense and distribution of cash reserves,
less the sum of maintenance capital expenditures not funded by financing
proceeds, net interest expense and other debt service. Adjusted EBITDA and
cash available for distribution are used as supplemental financial measures by
management and by external users of our financial statements, such as
investors and commercial banks, to assess:

  *the financial performance of our assets without regard to financing
    methods, capital structure or historical cost basis; and
  *our operating performance and return on invested capital compared to those
    of other publicly traded limited partnerships and other public companies,
    without regard to financing methods and capital structure.

Adjusted EBITDA, Pro-Forma Adjusted EBITDA and cash available for distribution
should not be considered alternatives to net income, operating income, net
cash provided by operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP. Adjusted EBITDA
and cash available for distribution may have material limitations as
performance measures because they exclude items that are necessary elements of
our costs and operations. In addition, Adjusted EBITDA and cash available for
distribution presented by other companies may not be comparable to our
presentation, since each company may define these terms differently.

The table below reconciles net income attributable to Rentech Nitrogen,
excluding Agrifos goodwill impairment, loss on debt extinguishment and fair
value adjustment to earn-out consideration, to net income for the year ended
December 31, 2013 (stated in thousands, except per share data).

                                                   For the Year
                                                      Ended December 31, 2013
                                                       
Net Income                                             $       4,068
Less: Income Attributable to Unvested Units                   366        
Net Income Attributable to Common Unit Holders         $       3,702      
Agrifos Goodwill Impairment                            $       30,029
Loss on Debt Extinguishment                                    6,001
                                                                          
Fair Value Adjustment to Earn-out                             (4,920     )
Consideration
Net Income Attributable to Common Unit Holders
Excluding Agrifos Goodwill Impairment, Loss on         $       34,812     
Debt Extinguishment and Fair Value Adjustment
to Earn-out Consideration
Net Income per Unit Attributable to Common             $       0.10
Unit Holders
Per Unit Agrifos Goodwill Impairment                           0.77
Loss per Unit on Debt Extinguishment                           0.15
Per Unit on Fair Value Adjustment to Earn-out                 (0.13      )
Consideration
Net Income per Unit Attributable to Common
Unit Holders Excluding Agrifos Goodwill
Impairment, Loss on Debt Extinguishment and            $       0.89       
Fair Value Adjustment to Earn-out
Consideration
Weighted-Average Common Units Outstanding                      38,850
                                                       
                                                       

The table below reconciles consolidated Adjusted EBITDA and cash available for
distribution to net loss for the three months ended December 31, 2013 (stated
in thousands, except per unit data).

                   For the Three Months Ended December 31, 2013
                       East           Pasadena       Partnership
                      Dubuque      Facility     Level         Consolidated
                       Facility
Net Loss               $ (2,139 )     $ (9,442 )     $  (5,826 )     $  (17,407 )
Plus: Interest           -              2               4,371           4,373
expense
Less: Income             (294   )       (240   )        -               (534    )
tax benefit
Plus:
Depreciation             2,739          2,192           -               4,931
and
amortization
Less: Other             -            -             (1     )       (1      )
Adjusted               $ 306          $ (7,488 )     $  (1,456 )     $  (8,638  )
EBITDA
Plus: Non-cash
compensation                                            75              75
expense
Less:
Maintenance              (3,631 )       (938   )        -               (4,569  )
capital
expenditures^1
Less: Interest
expense and              -              (2     )        (4,371 )        (4,373  )
debt service
Plus:
Distribution            -            -             19,449        19,449  
of cash
reserves
Cash available
for                    $ (3,325 )     $ (8,428 )     $  13,697      $  1,944   
distribution
Cash available
for                    $ (0.09  )     $ (0.22  )     $  0.35        $  0.05    
distribution,
per unit
Common units             38,888         38,888          38,888          38,888
outstanding

^1  Excludes $3.5 million of maintenance capital expenditures at the Pasadena
     Facility funded by debt.
     
     

The table below reconciles consolidated Adjusted EBITDA and cash available for
distribution to net income (loss) for the year ended December 31, 2013 (stated
in thousands, except per unit data).

                   For the Year Ended December 31, 2013
                       East           Pasadena        Partnership
                      Dubuque      Facility      Level         Consolidated
                       Facility
Net Income             $ 75,244       $ (48,357 )     $ (22,819 )     $  4,068
(Loss)
Plus: Interest           -              8               14,090           14,098
expense
Plus: Agrifos
goodwill                 -              30,029          -                30,029
impairment
Plus: Loss on
debt                     -              -               6,001            6,001
extinguishment
Less: Fair
value
adjustment to            -              -               (4,920  )        (4,920  )
earn-out
consideration
Plus: Loss on
interest rate            -              -               7                7
swaps
Plus: Income
tax (benefit)            66             141             (303    )        (96     )
expense
Plus:
Depreciation             9,239          8,073           -                17,312
and
amortization
Less: Other             -            -             (1      )       (1      )
Adjusted               $ 84,549       $ (10,106 )     $ (7,945  )     $  66,498
EBITDA
Plus: Non-cash
compensation             -              -               1,460            1,460
expense
Less:
Maintenance              (9,275 )       (1,079  )       -                (10,984 )
capital
expenditures^1
Less: Interest
expense and              -              (8      )       (17,964 )        (17,972 )
debt service
Plus:
Distribution            -            -             25,871         25,871  
of cash
reserves
Cash available
for                    $ 75,274      $ (11,823 )     $ 1,422        $  64,873  
distribution
Cash available
for                    $ 1.94        $ (0.30   )     $ 0.04         $  1.67    
distribution,
per unit
Common units             38,856         38,856          38,856           38,856
outstanding

^1  Excludes $7.3 million of maintenance capital expenditures at the Pasadena
     Facility funded by debt.
     
     

The table below reconciles consolidated adjusted EBITDA to net loss for the
three months ended December 31, 2013. The table also presents pro-forma
adjusted EBITDA that reverses the impact of turnaround expenses at both plants
and the impacts of the compressor foundation replacement and fire at the East
Dubuque Facility for the period (stated in thousands, except per unit data).

                 For the Three Months Ended December 31, 2013
                     East           Pasadena       Partnership
                    Dubuque      Facility     Level         Consolidated
                     Facility
Net Loss             $ (2,139 )     $ (9,442 )     $  (5,826 )     $  (17,407 )
Plus:
Interest               -              2               4,371           4,373
expense
Less: Income           (294   )       (240   )        -               (534    )
tax benefit
Plus:
Depreciation           2,739          2,192           -               4,931
and
amortization
Less: Other           -            -             (1     )       (1      )
Adjusted             $ 306          $ (7,488 )     $  (1,456 )     $  (8,638  )
EBITDA
Plus:
Turnaround             7,754          1,709           -               9,463
expense
Plus: Syngas
compressor
foundation             776            -               -               776
crack
expense
Plus:
Insurance
deductible             1,000          -               -               1,000
on equipment
damaged by
fire
Plus: Fixed
costs during          4,279        -             -             4,279   
downtime for
fire^(1)
Pro-Forma
Adjusted             $ 14,115       $ (5,779 )     $  (1,456 )     $  6,880
EBITDA

       Represents fixed plant costs incurred during the fire-related downtime
       that are recorded to cost of sales rather than capitalized into
       inventory and recorded as cost of sales when the volume produced during
^(1)  the period of the fire is subsequently delivered. GAAP requires that
       fixed costs incurred during a plant interruption such as the fire at
       the East Dubuque Facility are expensed as incurred as opposed to
       inventoried.
       
       

The table below reconciles consolidated adjusted EBITDA to net income (loss)
for the year ended December 31, 2013. The table also presents pro-forma
adjusted EBITDA that reverses the impact of turnaround expenses at both plants
and the impacts of the compressor foundation replacement and fire at the East
Dubuque Facility for the period (stated in thousands, except per unit data).

                   For the Year Ended December 31, 2013
                       East         Pasadena        Partnership
                      Dubuque    Facility      Level         Consolidated
                       Facility
Net income             $ 75,244     $ (48,357 )     $ (22,819 )     $  4,068
(loss)
Plus: Interest           -            8               14,090           14,098
expense
Plus: Agrifos
goodwill                 -            30,029          -                30,029
impairment
Plus: Loss on
debt                     -            -               6,001            6,001
extinguishment
Less: Fair
value
adjustment to            -            -               (4,920  )        (4,920  )
earn-out
consideration
Plus: Loss on
interest rate            -            -               7                7
swaps
Plus: Income
tax (benefit)            66           141             (303    )        (96     )
expense
Plus:
Depreciation             9,239        8,073           -                17,312
and
amortization
Less: Other             -           -             (1      )       (1      )
Adjusted               $ 84,549     $ (10,106 )     $ (7,945  )     $  66,498
EBITDA
Plus:
Turnaround               7,754        1,709           -                9,463
expense
Plus: Syngas
compressor               776          -               -                776
foundation
crack expense
Plus:
Insurance
deductible on            1,000        -               -                1,000
equipment
damaged by
fire
Plus: Fixed
costs during            4,279       -             -              4,279   
downtime for
fire^(1)
Pro-Forma
Adjusted               $ 98,358     $ (8,397  )     $ (7,945  )     $  82,016
EBITDA

       Represents fixed plant costs incurred during the fire-related downtime
       that are recorded to cost of sales rather than capitalized into
       inventory and recorded as cost of sales when the volume produced during
^(1)  the period of the fire is subsequently delivered. GAAP requires that
       fixed costs incurred during a plant interruption such as the fire at
       the East Dubuque Facility are expensed as incurred as opposed to
       inventoried.
       
       

The table below reconciles adjusted EBITDA to net income for the three months
and year ended December 31, 2012 (stated in thousands).

                             For the Three          For the Year
                                 Months
                                 Ended December 31,         Ended December 31,
                                2012                       2012
                                                            
Net income                       $       17,554             $    107,003
Add:
Interest Expense                         1,287                   1,424
Income Tax Expense                       303                     303
Depreciation and                         3,004                   12,460
Amortization
Loss on Debt                             2,114                   2,114
Extinguishment
Loss on Interest Rate                    44                      951
Swaps
Other                                   -                      (232      )
Adjusted EBITDA                  $       24,306             $    124,023   
                                                            

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 Statements

This press release contains forward-looking statements about matters such as:
our forecasts for 2014; the outlook for our nitrogen fertilizer businesses;
and trends in the pricing and demand for our nitrogen fertilizer products.
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.

Contact:

Rentech Nitrogen Partners, L.P.
Julie Dawoodjee Cafarella
Vice President of Investor Relations and Communications
310-571-9800
ir@rnp.net
 
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