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What: Shares of Rentech Nitrogen Partners (NYSE:RNF) fell as much as 17% today before recovering to a 6% loss at the end of trading.
So what: The drop came after management updated its outlook for this year and next. One surprise was a repair at the East Dubuque facility that will restrain ammonia production from 1,100 tons per day to 790 tons. The repairs will take around 90 days. The company also expects the fourth quarter to be weak because of low ammonium sulfate prices, and the Pasadena Facility will still run negative EBITDA in the fourth quarter.
Now what: There's really nothing to get excited about here, and to make matters worse, management pushed the normal distribution from 45 days after the quarter to 60 days after the quarter. This news comes after the distribution was reduced 68% to $0.27 per unit for last quarter. I don't see any positive momentum for the company operationally, and with so many factors up in the air, I don't think today is a good buying opportunity for investors.
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