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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